WALTHAM, Mass., Nov. 6, 2012 /PRNewswire/ -- A123 Systems,
Inc. (Nasdaq: AONE) ("A123" or "the Company"), a developer and
manufacturer of advanced Nanophosphate® lithium iron phosphate
batteries and systems, today announced that the United States
Bankruptcy Court for the District of Delaware (the "Court") has granted A123
interim approval to use $50 million
of Debtor-in-Possession ("DIP") financing, which is being provided
by Wanxiang Group Corporation ("Wanxiang"). The financing
supplements the pre-petition $22.5
million of liquidity and letter of credit support that
Wanxiang provided to A123, which will remain in place.
The hearing on bidding procedures with regard to the previously
announced asset purchase agreement with Johnson Controls, Inc.
(NYSE: JCI) that was initiated on Monday,
November 5, 2012, has been adjourned until a hearing
scheduled for November 8, 2012.
Johnson Controls consented to adjourn the hearing on this motion so
A123 and Johnson Controls could continue discussions with the
recently formed Official Committee of Unsecured Creditors and
attempt to resolve consensually any potential issues regarding the
bidding procedures.
"We are pleased that the Court has granted A123 interim approval
for the DIP financing agreement," said Dave
Vieau, Chief Executive Officer of A123. "The DIP financing
will allow A123 to operate our businesses and provides additional
operational and financial stability as we proceed with the
transaction process. It is important to note that being the
DIP provider does not give Wanxiang or any other party control over
or leverage in A123's court-supervised sale process. As we move
through the transaction process, we will continue to act in the
best interests of A123, its employees and its other stakeholders."
Additional information is available on A123's website at
www.a123systems.com or by calling A123's Restructuring Hotline,
toll-free in the U.S., at 1-800-224-7654. For calls originating
outside the U.S., please dial +1 973-509-3190.
About A123 Systems
A123 Systems, Inc. (Nasdaq: AONE) is a leading developer and
manufacturer of advanced lithium-ion batteries and energy storage
systems for transportation, electric grid and commercial
applications. The company's proprietary Nanophosphate® lithium iron
phosphate technology is built on novel nanoscale materials
initially developed at the Massachusetts
Institute of Technology and is designed to deliver high
power and energy density, increased safety and extended life. A123
leverages breakthrough technology, high-quality manufacturing and
expert systems integration capabilities to deliver innovative
solutions that enable customers to bring next-generation products
to market. For additional information please visit
www.a123systems.com.
Safe Harbor Disclosure
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended that are subject to risks, uncertainties and other
important factors, including statements with respect to the
expected benefits of the Wanxiang DIP agreement and the proposed
asset sales, the potential of the transactions to create value for
A123 and its stakeholders, the satisfaction of conditions to
closing of the transactions, and the necessity of bankruptcy court
and other approvals, including antitrust and other regulatory
approvals, to conduct and complete the financing and other
potential asset sales. Among the factors that could cause actual
results to differ materially from those indicated by such
forward-looking statements are: failure to obtain required
bankruptcy court and other approvals, failure to satisfy the
conditions to closing of the transactions, delays in the
development of A123's products, adverse economic conditions in
general and adverse economic conditions specifically affecting the
markets in which A123, Wanxiang and Johnson Controls operate, and
other risks detailed in A123 Systems' quarterly report on Form 10-Q
for the quarter ended June 30, 2012
and other publicly available filings with the Securities and
Exchange Commission. All forward-looking statements reflect A123's
expectations only as of the date of this release and should not be
relied upon as reflecting A123's views, expectations or beliefs at
any date subsequent to the date of this release.
SOURCE A123 Systems, Inc.