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Battery maker bankrupt after receiving $250M in stimulus funds
A123 Systems Inc., which was awarded nearly $250 million in government stimulus grants, filed for bankruptcy Tuesday.
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In this April 30, 2010, file photo, from right, A123 Systems, President and Chief Executive Officer David Vieau, A123 Systems electrical engineer James Fenton and A123 Systems design engineer Antonio Biundo, stand next to President Barack Obama, as he speaks in the Rose Garden of the White House in Washington. Short of cash and hurting from slow sales of electric cars, battery maker A123 Systems Inc. sent its U.S. operations into bankruptcy protection on Tuesday, Oct. 16, 2012, and quickly sold its automotive assets. The filing is likely to stoke the debate in Washington over the Obama administrationÃs funding of alternative energy companies. In 2009, A123 got a $249 million Department of Energy grant to help it build U.S. factories. Republicans have accused Obama of wasting stimulus money on the companies after the failure of politically connected and now-bankrupt solar power company Solyndra LLC, which left taxpayers on the hook for $528 million. (AP Photo/Haraz N. Ghanbari, File)
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