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After filing for bankruptcy this week and staring death right in the eyes, electric-car battery maker A123 Systems (NASDAQ:AONE) has potentially caught a breath of hope.
On Thursday, a U.S. Bankruptcy Court Judge granted A123 approval to borrow $15.5 million from Milwaukee, Wisconsin-based Johnson Controls Inc. (NYSE:JCI). A123 also disclosed plans to file an appeal to the court for the right to seek higher bids from others interested in purchasing the company.
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The interim financing was approved after Johnson Controls agreed to lower the interest rate on the loan from 15 percent to 13.5 percent, and the deal allows A123 the opportunity to maintain operations while it seeks potential buyers for its lithium-ion battery business.
A123 reported assets worth $459.8 million and debt of $376 million in Chapter 11 filings.
The court ruling — coupled with word of China’s Wanxiang Group’s professed eagerness to finance A123 in exchange for majority ownership — has investors curious about A123’s prospects of returning from the dead. Shares in the company have soared during Friday trading, closing up 64 percent.
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