Wanxiang Cleared To Loan $50M To Bankrupt A123

Law360, Wilmington (November 5, 2012, 6:35 PM EST) -- Wanxiang Group Corp. won court approval Monday to fund A123 Systems Inc.'s bankruptcy with a $50 million loan as the Chinese auto parts giant prepares a controversial bid for the government-funded battery maker's assets.

At a hearing in Wilmington, Del., U.S. Bankruptcy Judge Kevin J. Carey cleared the debtor-in-possession loan, which replaces financing from Johnson Controls Inc., the stalking horse bidder that has offered $125 million for A123’s core electric car battery business. 

A123, which received a $249 million grant from the Obama administration, stressed at...
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