WALTHAM, Mass., Nov. 26, 2012 /PRNewswire/ -- A123 Systems, Inc. ("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 final approval to access $50 million in Debtor-in-Possession ("DIP") financing provided by Wanxiang Group Corporation ("Wanxiang"). The Company previously received interim approval of the financing from the Court on November 5, 2012.
The Wanxiang DIP financing agreement supplements a pre-petition commitment of $22.5 million of liquidity and a letter of credit support that Wanxiang provided to A123, which will remain in place.
"The Court's final approval of our DIP financing agreement represents another important step forward in our transaction process," said Dave Vieau, Chief Executive Officer of A123. "This financing provides us with the operational and financial flexibility we need to support our business and serve our customers while we conduct an efficient sale of our assets."
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 benefits of the Wanxiang DIP agreement and the proposed asset sales, the potential of the transactions to create value for A123 and its stakeholders, the satisfaction of conditions to closing of the transactions, and the necessity of bankruptcy court and other approvals, including antitrust and other regulatory approvals, to conduct and complete the financing and other potential asset sales. 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, delays in the development of A123's products, adverse economic conditions in general and 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.