Huffpost Business

A123 Systems Received Nearly $1 Million From Obama Administration On Day It Filed For Bankruptcy

Posted: Updated:
A123 SYSTEMS
AP


WASHINGTON, Nov 16 (Reuters) - The Obama administration provided struggling battery maker A123 Systems Inc with nearly $1 million on the day it filed for bankruptcy, the company told lawmakers investigating its government grant.

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. (Reporting by Ayesha Rascoe; Editing by Gerald E. McCormick)

Also on The Huffington Post

Close
Weirdest Stuff The Government Is Trying To Sell Back To You
of
Share
Tweet
Advertisement
Share this
close
Current Slide

Suggest a correction

Around the Web

Exclusive: US gave A123 $1 million as it filed bankruptcy

A123 Systems Gets $50 Million Loan From Wanxiang

CEO Gaffe of the Week: A123 Systems... Again!

Chinese Firm to Provide A123 Funds

A123 Systems Wins Court Approval of Bankruptcy Loan

A123 Shows Risks as Battery Science Meets Government Cash

A123's Executives Get Their Richly Undeserved Bonuses

Why A123 Systems Is A Sucker's Bet

After Bankruptcy of A123 Systems, Fisker Keeps Calm and Carries On

What does A123 bankruptcy mean for Fisker?