A123 Systems (
) have filed for bankruptcy on Tuesday after receiving a grant from
the governent. Johnson Controls, Inc. (
) has made a deal with the company to purchase their ion battery
A123 Systems have declared that they have filed for bankruptcy
on Tuesday after a financing deal with China's Wanxiang Group Corp.
The company had previously received a government grant of $249
million. AONE became a public company starting at $13.50 a share in
September 2009, which shot up to its high of $22.44 a share in
December 2009. Six months later, the stock price declined
significantly and fell under $10 never recovering.
Auto Parts company, Johnson Controls have agreed to purchase the
ion battery business from A123 for $125 million. In addition,
Johnson controls have paid A123 $73 million in financing to help
the company survive. While Johnson Controls will take ownership of
their their automotive technology, A123 plans to continue to find
strategic alternatives for its grid, commercial, government, and
Johnson Controls shares were up 12 cents, or 0.46% and A123
Systems shares were down 17 cents, or 74.54% Tuesday afternoon.
Johnson Controls, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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