Sales of A123 Systems operation in Ann Arbor finalized by US bankruptcy court
Two deals for the assets of bankrupt A123 Systems — including an office in Ann Arbor — were completed late Tuesday, according to reports in the Detroit News. The moves are expected to preserve about 1,000 jobs in Michigan.
Navitas Systems LLC plans to acquire about 40 A123 Systems Inc. employees in Ann Arbor, as it completes it $2.3 million acquisition of the government and research side of the battery maker's business.
The company hopes to double the size of the office, according to the report.
At the same time, Chicago-based Wanxiang America - the U.S. based headquarters of the $4.2 billion Wanxiang Group Corp., based in China - finalized its $256.6 million acquisition of the nongovernment business assets of A123 Systems, including facilities in two other states and operations in Livonia and Romulus.
The deals were worked out in December, according to previous reports.
The bankruptcy filing came in October.
A123 landed a $249.1 million economic stimulus grant from the U.S. DOE in August 2009. That came after the battery manufacturer won $125 million in tax credits and incentives from the Michigan Economic Development Corp. in spring 2009 and a $10 million cash grant from the state in fall 2008. The company received about $135 million of the grant.
From a New York Times report on the filing:
"A123, based in Waltham, Mass., was once considered one of the most promising grant recipients under the (Obama) administration’s $2 billion stimulus program for electric car development."
Ann Arbor-based T/J Technologies was acquired by A123 Systems in 2006. The company retained its Ann Arbor office as it planned to grow lithium-ion battery making capacity in the state.