Dec 17 Johnson Controls Inc filed an
appeal against the sale order of bankrupt battery maker A123
Systems Inc to Chinese rival Wanxiang Group,
objecting to a delay in payment of fees owed to it.
Johnson Controls, an auto-parts maker, was the lead bidder
for the bankruptcy auction of A123 this month and had been due a
$5.5 million fee in return for supporting the sale.
Johnson said it was objecting to a delay in the payment of
the fee, which the bankruptcy court has ruled will only be
released when the sale closes or after an investigation by A123
Johnson Controls has said it remains interested in A123 if
auction winner Wanxiang, China's largst auto parts maker, fails
to get approval to buy A123.
The U.S. government is under pressure from some politicians
to block the deal of the formerly subsidised firm to China.
"Should the sale of A123 Systems to Wanxiang not be
completed for any reason, Johnson Controls remains open to
considering future opportunities to acquire relevant portions of
A123's assets," said Alex Molinaroli, President of Johnson
Controls Power Solutions.
A123 filed for bankruptcy in October as demand for electric
vehicles did not live up to expectations and it was forced to
recall defective car batteries. Its customers include Fisker
Automotive, General Motors Co and BMW.
The case is A123 Systems Inc, Delaware Bankruptcy Court, No.