Filed under: EV/Plug-in, Legislation and Policy, China, USA



Johnson Controls isn't taking the bankruptcy sale of A123 Systems to the Chinese company Wanxiang lying down. Wanxiang won the bankruptcy court sale for $256 million on December 11 and, today, Johnson Controls has filed an appeal against the sale because it "objects to delay in payment of break-up fee and expense reimbursement."

Basically, A123 owed Johnson Controls (JCI) money (under something called a "stalking horse agreement" which is probably less fun than it sounds) and JCI now says that it should get this unspecified amount of money because it is entitled to do so. The money was put into escrow because there were questions about JCI lobbying against the Wanxiang sale. JCI contends the "activities of Johnson Controls' representatives involving public officials are consistent with First Amendment rights to free speech and are strictly governed by the company's ethics policy and comply with government regulations." Some members of Congress are wondering if the A123 sale will reveal trade secrets to the Chinese.

Alex Molinaroli, Johnson Controls Power Solutions president, said in a statement that, "Johnson Controls remains open to considering future opportunities to acquire relevant portions of A123's assets, keeping this critically important technology in the United States, preserving jobs and furthering the purpose of the American Reinvestment and Recovery Act," should the Wanxiang sale not go through. JCI says it, "shares concerns that have been voiced by members of Congress and other interested parties."Continue reading Johnson Controls appeals Wanxang's A123 purchase

Johnson Controls appeals Wanxang's A123 purchase originally appeared on AutoblogGreen on Mon, 17 Dec 2012 12:15:00 EST. Please see our terms for use of feeds.



Permalink | Email this | Comments

More...