The bankruptcy proceedings for A123 Systems are moving relatively smoothly toward completion, and it looks like Wanxiang America Corp. and Navitas Systems LLC should complete the transactions within the guidelines of the court-ordered asset purchase agreements by February 1, 2013.
Chinese parts manufacturer Wanxiang has been under pressure in Washington to keep A123 Systems a US-based company, which Wanxiang has said it will do. Under A123 Systems' new agreement, Wanxiang will acquire A123's automotive, grid and commercial business assets in the US, its cathode powder manufacturing plant in China and its equity share in A123's joint venture with Shanghai Automotive's battery systems division.
A123 Systems customer Fisker Automotive may have been in talks with Wanxiang recently on a trip to China, as the plug-in hybrid sports carmarker seeks investors.
In a separate transaction from the Wanxiang agreement, A123 has sold its government business, primarily military contracts, to Navitas Systems. Navitas is a Woodbridge, IL-based provider of energy-enabled system solutions and energy storage products.
More information on the background of the bankruptcy proceeded and investor transactions can be found on the A123 Systems website and the company's claims agent website, as well as the press release below.
WALTHAM, Mass., Jan. 18, 2013 (GLOBE NEWSWIRE) -- A123 Systems ("A123" or the "Company") today provided an update regarding the previously announced asset purchase agreements with Wanxiang America Corporation ("Wanxiang") and Navitas Systems LLC ("Navitas").
A123 continues to work with Wanxiang and Navitas to prepare for the closing of the transactions contemplated by the asset purchase agreements. A123 currently expects that the transactions will close pursuant to the terms set forth in the asset purchase agreements by February 1, 2013.
Additional information is available on A123's website at www.a123systems.com or by calling A123's Restructuring Hotline, toll-free in the U.S., at 1-800-224-7654. For calls originating outside the U.S., please dial +1 973-509-3190. Court documents and additional information can be found at a dedicated website administrated by the Company's Claims Agent, Logan & Company: www.loganandco.com.
About A123 Systems
A123 Systems, Inc. is a leading developer and manufacturer of advanced lithium-ion batteries and energy storage systems for transportation, electric grid and commercial applications. The company's proprietary Nanophosphate® lithium iron phosphate technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density, increased safety and extended life. A123 leverages breakthrough technology, high-quality manufacturing and expert systems integration capabilities to deliver innovative solutions that enable customers to bring next-generation products to market. For additional information please visit www.a123systems.com.
Safe Harbor Disclosure
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are subject to risks, uncertainties and other important factors, including statements with respect to the expected closing of the transactions contemplated by the asset purchase agreement and the satisfaction of conditions to closing of the transactions. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: failure to obtain approvals required for the closing or other failures to satisfy the conditions to closing of the transactions. All forward-looking statements reflect A123's expectations only as of the date of this release and should not be relied upon as reflecting A123's views, expectations or beliefs at any date subsequent to the date of this release.