Another Green Failure: A123 Files for Bankruptcy

From The Foundry:

A123, recipient of a $249 million Department of Energy manufacturing grant, warned of impending debt default and cash problems that forced the company to seek bankruptcy protection.

With 14 straight quarterly losses–nearly $83 million in 2nd Quarter 2012 and $125 million in the previous quarter, on top of $258 million in 2011, reported here on Scribe, the company hoped to change its fortunes with an infusion of investor cash from China.

An August “memorandum of understanding” between A123 and Chinese auto manufacturer Wanxiang promised $450 million in debt bailout and other cash incentives that would grant the Chinese company an 80 percent interest in A123.

The potential strategic partnership between the two companies failed to materialize.

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Photo courtesy Living Off Grid, flickr