A123 Creditors Can't Bar JCI From $5.5M Breakup Fee

Law360, Wilmington (January 22, 2013, 10:54 PM EST) -- A Delaware bankruptcy judge on Tuesday denied a move by creditors of A123 Systems Inc. to withhold a $5.5 million breakup fee owed to stalking horse bidder Johnson Controls Inc. pending an investigation of its lobbying efforts, ruling the funds should be released as previously agreed.

The official committee of unsecured creditors had sought to keep the fee in escrow while it looked into Johnson Control's campaign to block the sale of the bankrupt battery maker to Wanxiang Group Corp., the Chinese company that won the...
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