A123 Receives Final Approval of $50MM DIP Financing
A123 Systems announced that the U.S. Bankruptcy Court for the District of Delaware has granted A123 final approval to access the $50 million Debtor-in-Possession (DIP) financing provided by Wanxiang Group. The company previously received interim approval of the financing from the Court on Nov. 5, 2012.
The Wanxiang DIP financing agreement supplements a pre-petition commitment of $22.5 million of liquidity and a letter of credit support that Wanxiang provided to A123, which will remain in place.
“The court’s final approval of our DIP financing agreement represents another important step forward in our transaction process,” said Dave Vieau, A123 chief executive officer. “This financing provides us with the operational and financial flexibility we need to support our business and serve our customers while we conduct an efficient sale of our assets.”
A123 Systems develops and manufactures advanced Nanophosphate lithium iron phosphate batteries and systems.
Previously on abfjournal.com: