- GOP hopes taking shutdown off the table with budget deal will pay dividends
- Chinese Death Star: The moon cited as the perfect launch pad for ballistic missiles
- Help wanted: Homeland Security plagued by vacancies at the top
- We are not amused: Queen’s protection officers warned to keep ‘sticky fingers’ off the royal cashews
- Unleash the crossbows: Gov. Scott Walker creates new hunting season
- Bubonic plague kills 20 in Madagascar
- G-20 diplomats fell for hacker attack promising nude photos of former French first lady Carla Bruni
- Minnesota guardsman charged with stealing private soldier data for fake IDs
- Florida appeals court rules universities can’t regulate guns
- Vladimir Putin defends Russian conservative values
Failed bidder for battery maker A123 appeals decision to sell to Chinese company
An American company that lost out in its bid for the assets of a failed, federally backed battery maker is appealing a judge’s decision last week selling the company to a Chinese competitor.
The sale of A123 Systems, which went broke despite a nearly quarter-billion-dollar federal grant, to Chinese-based Wanxiang has prompted critics in Congress to urge the federal government to intervene and block the sale on national security and other grounds.
Milwaukee-based Johnson Controls filed its appeal with the U.S. Bankruptcy Court in Delaware early Monday, saying the company should have been paid a so-called breakup fee and expense reimbursement in the deal selling A123.
“Should the sale of A123 Systems to Wanxiang not be completed for any reason, Johnson Controls remains open to considering future opportunities to acquire relevant portions of A123’s assets, keeping this critically important technology in the United States, preserving jobs and furthering the purpose of the American Reinvestment and Recovery Act,” said Johnson Controls‘ President Alex Molinaroli.
While A123 received approval for a $249 million federal grant through the recovery act, it only received about half of the money before filing for bankruptcy protection earlier this year. The funds were intended to create thousands of American jobs, but a review by The Washington Times of government job tracking data showed only about 400 new jobs were created.
A bankruptcy judge gave approval last week for Wanxiang to buy most of A123’s assets, though the failed battery maker’s government contracting business would go to another company based in the U.S. under the deal.
The $257 million sale, however, still requires approval from the Committee on Foreign Investment in the United States, a federal entity charged with reviewing proposed sales of U.S. companies to foreign buyers.
But Republican Sens. Chuck Grassley of Iowa and John Thune of South Dakota issued a joint statement last week calling for a “full review” of the bankruptcy transaction by the federal government.
“In the end, the taxpayers will be left having to repay interest to China for a business that a Chinese company now owns,” the lawmakers said.
© Copyright 2013 The Washington Times, LLC. Click here for reprint permission.
About the Author
- Stung by defeat: SEC hires trial consultants
- Solaria? Solyndra? Feds bailed on promising solar company, lawsuit says
- Last call: State Dept. bought $180,000 in liquor before shutdown
- Federal prosecutors drop charges against defendants who disappeared
- Bankrupt energy company probed
Latest Blog Entries
By Mangosuthu Buthelezi
Memories of a long brotherhood tempered in common struggle
- NAPOLITANO: A conspiracy so vast
- Obama's Afghanistan experts stumped on U.S. death toll, war costs during hearing
- Comma on!: Twitter erupts over Obama-Castro 'marriage'
- All-out war breaks out in GOP over budget pact
- ICT trade mission to Azerbaijan successfully completed
- American bourbon now better than Scottish whisky: U.K.-born expert
- JACOBS: Prepare for a fight on driverless vehicles
- Obama takes 'selfie' at Mandela's funeral service
- Inside China: Ukraine gets nuke umbrella
- White House faces press revolt over access to Obama's South Africa flight
Independent voices from the The Washington Times Communities
Consummate traveler Todd DeFeo explores the unique stories that make destinations worth going to.
Covering the world of soccer, including the World Cup, Major League Soccer, D.C. United and the English Premier League and other interesting sporting events.
Born in 1930 in rural Missouri, Charles Vandegriffe, Sr., brings his time and place to the Communities.
Columns from Voices around the World talking about the events, people, politics and social issues that concern us wherever, and whoever, we are.
Extraordinary day at Redskins Park
White House pets gone wild!
Let it snow