A123 Systems (AONE) May Appeal Bankruptcy Judge to Auction Lithium-Ion Battery Unit (JCI)
According to Bloomberg, A123 is hoping to convince a U.S. bankruptcy court judge to hold an October 30th hearing for approval of auction and sale procedures related to the unit. Johnson Controls (NYSE: JCI), which was selected to provide about $72.5 million of debtor-in-possession financing, is already under commitment to buy the unit for $125 million in cash plus costs associated with curing defaults on contracts. Approval on the Johnson Controls contract is required no later than October 31st.
However, A123 wants the judge to approve a measure for bidding on the unit to be due November 16th, an auction on November 19th, and sale approval on November 26th.
The following are financial metrics and obligations listed by A123 in the filing:
- Assets of $459.8 million;
- Liabilities totaling $376 million;
- Debt includes $143.8 million on 3.75 percent convertible subordinated notes;
- Other liabilities include $22.5 million on a bridge loan owing to Chinese auto-parts maker Wanxiang Group Corp. That company held talks on acquiring A123 before bankruptcy.
- A123 owes about $33 million is owing to trade suppliers, according to a court filing.
- FY11 revs were $159.2 million;
- YTD FY12 revs are at $39.6 million
- FY11 net loss was $257.8 million;
- FY12 net loss to August is at $269 million.
A123 reported receiving court approval of certain "first day" orders that help support its business.
Shares of A123 are about 45 percent higher Friday morning.