Bend over, U.S. taxpayers.
A123 Systems has filed for bankruptcy protection in federal court in Wilmington, Delaware, Bloomberg reports. Late yesterday, the battery company had warned that it was about to default on several loan issues, noting that a bankruptcy filing was a possibility; but it still seems startling to see them file just hours later.
A123 makes rechargeable lithium-ion batteries for electric cars. The company has been hurt by the slow development of the electric car market.
Don’t be surprised to see this turn into a Solyndra-style political football; A123 had received $249 million in grants from the U.S. Department of Energy.
A123 this morning is down 14 cents, or 57.9%, to 10 cents.
HT: Andrew Kaczynski