A bidding war for A123 Systems Inc., the electric car battery maker that has filed for creditor protection, broke out in bankruptcy court between a spurned Chinese suitor and an American auto-parts maker, the Wall Street Journal reported today. A lawyer for Chinese auto-parts maker Wanxiang Group Corp. indicated at an initial hearing in Wilmington, Del., that the company is still interested in A123 despite a $125 million offer from Milwaukee-based Johnson Controls Inc. for the battery maker's auto business. The disclosure sets up a fight between Wanxiang and Johnson Controls, which has agreed to provide A123 with $72.5 million in debtor-in-possession financing to fund the bankruptcy case. D.J. "Jan" Baker, A123's bankruptcy attorney, said that the company would seek approval of the Johnson Controls loan only on an "interim" basis in order to shop for better financing terms.
