A123 Systems expects to default of some debt
WALTHAM, Mass. (AP) — A123 Systems says a default on some of its debt is likely and it may be heading for bankruptcy protection.
Just two months ago, the electric vehicle battery maker announced a $450 million lifeline from a Chinese company to stay afloat. It is getting a waiver on that debt for now.
There were enormous hopes for A123 when it went public three years ago and shares soared 50 percent to more than $20 on the first day. A123 also got a $249 million government grant to help it build a battery factory in Michigan. Shares cost 13 cents Tuesday.
In a regulatory filing, the Waltham, Mass., company now says it expects to miss payments Tuesday on its $143.8 million in 2016 notes and $2.8 million in 6 percent notes.