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Battery maker B456 Systems' bankruptcy plan approved
May 21, 2013 / 1:11 PM / in 5 years

Battery maker B456 Systems' bankruptcy plan approved

May 21 (Reuters) - B456 Systems Inc, the lithium-ion battery maker which received a $249 million U.S. government grant, won court approval for its bankruptcy plan on Monday.

Judge Kevin Carey approved the plan under which unsecured creditors of the company, formerly A123 Systems Inc, are expected to recover about 65 cents for each dollar.

B456 had earlier won court approval to sell its automotive battery business and related assets to a U.S. unit of China’s largest auto parts maker, Wanxiang Group.

Wanxiang beat out the only other active bidder, Johnson Controls Inc, in a court-supervised auction for the assets of Waltham, Massachusetts-based B456.

B456 had received a $249 million grant from the U.S. government as part of a clean energy program to build manufacturing facilities in Michigan. About half the money was never released.

The company filed for bankruptcy in October due to weaker-than-expected demand for hybrid vehicles and technical problems. B456 makes lithium-ion batteries for Fisker Automotive, BMW hybrid 3- and 5-Series cars, and General Motors Co’s all-electric Chevrolet Spark, which is scheduled for release later this year.

The case is B456 Systems Inc, U.S. Bankruptcy Court, District of Delaware, No. 12-12859

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