Battery Maker Files for Bankruptcy

Battery-maker A123 Systems filed for Chapter 11 bankruptcy protection on Tuesday, despite having received a $249 million grant from the U.S. government. The move was unexpected, especially since the company had been in talks for a rescue deal with Chinese auto-parts supplier Wanxiang Group for $465 million, although A123 said that deal had fallen through. The company has agreed to sell its automotive operations, including two facilities in Michigan, for $125 million to Johnson Controls Inc. Makers of lithium-ion batteries, A123 has been touted as part of the Obama administration’s green-energy initiatives.