Court Approves $50M In Financing For A123
A Delaware bankruptcy court judge has granted interim approval to A123 Systems Inc., a lithium ion battery maker with operations in MetroWest, to use $50 million of financing from a major Chinese corporation that nearly purchased the company two months ago.
Wanxiang Corp. will provide the debtor-in-possession (DIP) financing, which supplements the pre-petition $22.5 million of liquidity and letter of credit support that Wanxiang provides to A123.
David Vieau, CEO of A123, said the financing will allow the company to continue operating and provide additional financial stability as it moves through the Chapter 11 bankruptcy process.
"It is important to note that being the DIP provider does not give Wanxiang or any other part control over or leverage in A123's court-supervised sale proceeds," Vieau said.
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