A123 Systems, Inc. is a U.S. based company that makes lithium ion batteries for electric vehicles. As part of the Clean Energy Program, the EV battery maker was able to apply for and receive a $249 million dollar federal grant from the U.S. Energy Department. The funds were authorized in an effort to help further advance battery development in the United States, increase EV battery manufacturing, support America workers and keep the U.S. competitive in the global market. Unfortunately, due to a weak market, lack of interest in electric vehicles, and a surplus of battery manufacturers, A123 has found itself struggling. Then after missing a $2.7 million payment in October, A123 opted to file for Chapter 11 bankruptcy protection. During the proceedings, and in an effort to remain open, A123 attempted to broker a rescue deal with a Chinese auto parts supplier. Unfortunately, that deal has failed to go through and the company is continuing with the bankruptcy.
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There is no shame in asking for help. If you have questions about bankruptcy, or think bankruptcy may be right for you, contact a Detroit bankruptcy lawyer at our firm today to schedule your confidential consultation.