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UPDATE: A123 Declares Bankruptcy
A123 Systems Inc., the Waltham, Mass.-based maker of lithium-ion batteries for electric vehicles, filed for bankruptcy protection today.
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A123 Systems Inc., the Waltham, Mass.-based maker of lithium-ion batteries for electric vehicles, filed for bankruptcy protection today.
The company missed $147 million in bond payments due on Monday and warned it might not have enough cash to fund operations. The company told the U.S. Securities and Exchange Commission that it is exploring a "broad set of strategic alternatives" to resolve its liquidity problem.
The bankruptcy comes two months after China's Wanxiang Group Corp. agreed to invest as much as $465 million to buy 80% of the American company, including an immediate $25 million bridge loan.
The battery maker has posted 14 consecutive quarterly losses. This year the company has been hurt by warranty expenses, the cost of recalling defective batteries and relatively slow sales of electric vehicles.
A123 lost $83 million in the April-June quarter as revenue plunged 50% to $17 million. The company's shares, which peaked at $25.77 shortly after it went public in October 2009, fell to 24 cents in after-hours trading on Monday.
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