A123 Got $1M From Gov on Same Day it Went Bankrupt
Battery-manufacturer A123 Systems Inc. received a $249 million grant under President Barack Obama's green energy initiative including nearly $1 million from the federal government the same day it declared bankruptcy, Reuters reports:
The company, which makes lithium ion batteries for electric cars, filed for Chapter 11 bankruptcy protection last month after a rescue deal with Chinese auto parts supplier Wanxiang Group fell apart.
That same day, Oct.16, A123 received a $946,830 payment as part of its $249 million clean energy grant from the Energy Department, the company said in a letter, obtained by Reuters, to Republican Senators John Thune and Chuck Grassley.
In the letter, dated Nov.14, A123 said the October payment was the most recent disbursement it had received from the government, with an additional $115.8 million still outstanding on the grant.
Posted by: Au Auric 2012-11-18