Updating a story that we blogged about last week, Johnson Controls has filed an appeal with the U.S. Bankruptcy Court in Delaware over the sale of failed battery manufacturer A123 Systems Inc.
According to the Washington Times, Johnson Controls missed out on the purchase of A123 earlier this month when a judge approved its sale to China’s Wanxiang America Corporation for $256.6 million. In its appeal, Johnson Controls maintains that A123 should have paid a “breakup fee and expense reimbursement” when it filed for bankruptcy.
A123 produces batteries for American-made electric cars and has multiple US military contracts. Its sale still needs to be approved by the Committee on Foreign Investment in the United States, a Washington government body that reviews deals that could result in the control of U.S. businesses by a foreign person or company.
More than two dozen lawmakers, including Republican Senators Chuck Grassley of Iowa and John Thune of South Dakota, have voiced concerns that some of A123′s military contracts could wind up in the hands of a foreign purchaser.
Meanwhile, Johnson Controls released a statement indicating it still has interest in purchasing the company if its sale to Wanxiang is not approved. “Should the sale of A123 Systems to Wanxiang not be completed for any reason, Johnson Controls remains open to considering future opportunities to acquire relevant portions of A123’s assets, keeping this critically important technology in the United States, preserving jobs and furthering the purpose of the American Reinvestment and Recovery Act,” said Johnson Controls’ President Alex Molinaroli.
Chapter 11 bankruptcies allow businesses to remain in control of their operations while searching for investors or buyers. Individuals struggling financially can file for Chapter 13 or Chapter 7 bankruptcy, which allows you to discharge debts like credit card debt and medical bills.
If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.
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