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

Obama Administration Gave Company $1 Million On DAY It Filed For Bankruptcy
FILE - An A123 Systems Inc. logo is seen in a Thursday, Aug. 6, 2010 file photo in Livonia, Mich. A123 Systems says Tuesday, Oct. 16, 2012 that a default on some of its debt is likely and it may be heading for bankruptcy protection. (AP Photo/Paul Sancya, File)
FILE - An A123 Systems Inc. logo is seen in a Thursday, Aug. 6, 2010 file photo in Livonia, Mich. A123 Systems says Tuesday, Oct. 16, 2012 that a default on some of its debt is likely and it may be heading for bankruptcy protection. (AP Photo/Paul Sancya, File)

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)

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