A123 Systems Inc., the electric-car battery maker that recently filed for bankruptcy, is seeking emergency approval to tap a $50 million loan provided by a Chinese auto parts maker to fund its chapter 11 case pending an auction of the clean energy firm, the Wall Street Journal reported yesterday. Lawyers for A123 Systems said on Sunday in a bankruptcy court filing that Chinese auto parts maker Wanxiang Group Corp. will provide the debtor-in-possession financing, replacing initial lender Johnson Controls Inc. Wanxiang's bankruptcy loan, which cuts the interest rate to 12 percent from 15 percent from Johnson Controls' initial offer, comes as a bidding war heats up between the two companies vying for the Massachusetts-based battery maker's assets.
