Chapter Green: A123 Declares Bankruptcy
Battery maker A123 declared Chapter 11 bankruptcy Tuesday, announcing it would sell off it's assets.
A123 received more than $250 million in state and federal funding to help it run its operations providing batteries for electric cars and other products. But it has also faced many problems, including defective products.
A123 today said Johnson Controls (JSI) will help finance the filing by buying A123's automotive business assets for $125 million. As part of the transaction, A123 will receive $72.5 million from Johnson Controls to continue operating during the process.
A123 is not the first government-funded alternative energy company to file for bankruptcy. Ener1, another battery company, filed for Chapter 11 in January. At that time, it cited slower demand for its products due to lower-than-expcted adoption of electric vehicles. And energy-storage company Beacon Power and solar power manufacturer Solyndra filed for bankruptcy last year.