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.