Bankrupt A123 Seeks Approval Of $50M Loan From Wanxiang

Law360, New York (October 29, 2012, 6:31 PM EDT) -- Bankrupt battery maker A123 Systems Inc. asked a Delaware bankruptcy court Sunday for its blessing for Wanxiang America Corp. to replace lender Johnson Controls Inc. with $50 million in financing for its Chapter 11 case.

The new funding from Chinese auto parts giant Wanxiang, which also loaned A123 $25 million before it filed for bankruptcy, will be used to pay off the Johnson Controls financing and to fund A123's bankruptcy proceedings along with cash collateral.

The funding isn't tied to any stalking horse bid, and the...
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