A123 Systems files for Chapter 11

Oct 16, 2012 - US lithium ion batteries maker A123 Systems (NASDAQ:AONE) on Tuesday filed for Chapter 11 bankruptcy protection with the US Bankruptcy Court in Delaware.

The company, whose products are also used to ensure grid stability as renewable power generation globally is growing, joins the list of bust alternative energy firms which have been backed by federal grants and loans. In that case, A123 Systems got a USD-249-million (EUR 191m) grant from the US Department of Energy (DOE) in August 2009 to build lithium ion battery manufacturing facilities at home.

On Monday, A123 Systems was unable to make interest payments on USD 143.8 million of notes due 2016 and on USD 2.76 million in outstanding 6% notes, it said in a regulatory filing, adding that it might seek protection under the US Bankruptcy Code.

In August this year A123 Systems posted a net loss of USD 208 million for the first half of 2012, nearly doubling the USD-109-million loss from the first half of 2011. Revenue halved to USD 27.9 million from USD 54.5 million.

(USD 1 = EUR 0.767)

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