A123 Systems Receives Court Approval of Stalking Horse Bidding Procedures
WALTHAM, Mass., Nov. 8, 2012 /PRNewswire/ -- A123 Systems, Inc. (Nasdaq: AONE) ("A123" or "the Company"), a developer and manufacturer of advanced Nanophosphate® lithium iron phosphate batteries and systems, today announced that the United States Bankruptcy Court for the District of Delaware (the "Court") has granted A123 approval of the bidding procedures and stalking horse bid protections in connection with the previously announced stalking horse asset purchase agreement, under which Johnson Controls intends to acquire A123's automotive business assets in a court-supervised process under Section 363 of the U.S. Bankruptcy Code.
In addition to the stalking horse asset purchase agreement with Johnson Controls, A123 continues to engage in active discussions regarding strategic alternatives for its grid, commercial, government and other operations, and has received several indications of interest for these businesses.
"This is an important milestone in our reorganization process and we are pleased to be making progress with the bidding process," said Dave Vieau, Chief Executive Officer of A123. "A123 and its advisors are confident that the court-supervised transaction process provides a level and fair playing field for all participants. We are encouraged by the continued interest in A123's assets from Johnson Controls, which has stated an interest in expanding its bid to acquire A123's government business. We are also encouraged by the interest in A123's assets from Wanxiang Group Corporation and multiple additional parties. We are committed to acting in the best interests of A123, its employees and its other stakeholders and look forward to engaging in a robust auction process."
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.
About A123 Systems
A123 Systems, Inc. (Nasdaq: AONE) 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 benefits of the proposed asset sales, the potential of the transactions to create value for A123 and its stakeholders and the number of potential bidders in the auction process,. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: failure to obtain required bankruptcy court and other approvals, failure to satisfy the conditions to closing of the transactions, adverse economic conditions specifically affecting the markets in which A123, Wanxiang and Johnson Controls operate, and other risks detailed in A123 Systems' quarterly report on Form 10-Q for the quarter ended June 30, 2012 and other publicly available filings with the Securities and Exchange Commission. 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.
SOURCE A123 Systems, Inc.