Tuesday, October 16, 2012

A123 May Seek Bankruptcy

A sad day for electric vehicle enthusiasts. At one time A123 was the contender for cheap and powerful batteries. Now, not so much.

A123 Systems Inc. (AONE), the maker of lithium-ion batteries for electric cars, said it may run out of cash to fund operations and may need to seek bankruptcy protection.

A123 expects to be in default under material debt agreements today, the Waltham, Massachusetts-based company said yesterday in a regulatory filing. A123 didn’t expect to be on time with an interest payment due yesterday on $143.8 million of notes expiring in 2016, or to make a payment due yesterday on $2.76 million in outstanding 6 percent notes, according to the filing.

Electric power is hard. (A semi-related topic for this blog, for those interested in embedded programming and especially transportation.)

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