According to the Associated Press, Electric car battery maker A123 Systems filed for Chapter 11 bankruptcy protection last week and has reached a deal to sell its automotive assets.
The AP reports that Johnson Controls will pay $125 million for A123’s auto business, which includes two Michigan factories that produce the lithium-ion battery technology used in cars like the upcoming Chevrolet Spark.
The Michigan plants were paid for with the help of a $249 million government grant from stimulus funds, according to the AP. A representative with A123 told the AP that it “expects to continue operations as it moves toward the sale to Johnson Controls.”
Chapter 11 bankruptcies are common among businesses, as it allows them 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