A123 to seek approval for loan from Chinese auto parts maker
Published: Friday, 26 Oct 2012 | 5:16 PM ET
It asked the court to extend bidding deadlines for 30 days.
Wanxiang would need approval from the Committee on Foreign Investment in the United States and the government of China to acquire A123.
Wanxiang's lawyer told the court earlier this month the Chinese company intended to present its own stalking horse proposal to the court next Tuesday, but that matter was postponed to Nov. 5, according to the agenda.
Wanxiang has been pursuing A123 for months. The bankruptcy came after a $465 million rescue deal by the Chinese company unraveled after the U.S. battery maker was unable to meet some conditions of the agreement.
The case is A123 Systems Inc, Delaware Bankruptcy Court, No. 12-12859.
(Reporting By Tom Hals in Wilmington, Delaware; Editing by Tim Dobbyn)
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Keywords: A123 BANKRUPTCY/JOHNSON WANXIANG
Oct 26- Bankrupt battery maker A123 Systems Inc. plans to ask for court approval for a loan from auto parts maker Wanxiang Group Corp, which could give the Chinese company an advantage over a U.S. rival in a takeover battle for A123. A123, which filed for bankruptcy earlier this month, has an interim bankruptcy loan with Johnson Controls.