A123 and its U.S. Subsidiaries Computer file Non-reflex Area 11 Applications To Assist in Transaction
Process Johnson Manages to Offer $72.5 Thousand in DIP Funding To Assistance A123's Ongoing Operations
A123 Definitely Looking for Ideal Alternatives for Lines, Professional, Govt and other Companies and Operations
WALTHAM, Huge.Techniques, Inc. (Nasdaq: AONE) ("A123" or "the Company"), a designer and producer of innovative Nanophosphate® lithium metal phosphate battery power and systems, these days declared that it has joined into an resource buy agreement with Johnson Manages, Inc. (NYSE: JCI) in a deal respected at $125 million. Under the conditions of the agreement, Johnson Manages programs to obtain A123's automotive business assets, such as all of its automotive technological innovation, products and client contracts; its features in Livonia and Romulus, Michigan; its cathode dust production features in Chinese suppliers, and A123's value attention in Shanghai Advanced Grip Battery power Techniques Co., A123's partnership with Shanghai Automobile. The resource buy agreement also contains conditions through which Johnson Manages programs to certificate back to A123 certain technological innovation for its grid, commercial and government businesses. A123 also is constantly on the practice effective conversations regarding strategic options for its grid, commercial, government and other functions, and has obtained several symptoms of attention for they.
To facilitate the deal procedure, A123 and all of its U.S. subsidiaries these days registered voluntary petitions for reorganization under Area 11 of the U.S. Bankruptcy Value in the U.S. Bankruptcy Judge for the Region of De. The Organization's subsidiaries situated outside the U.S. were not involved in the filings. This action is predicted to allow the Organization to offer for an organized purchase of the automotive business assets and all other assets and sections under Area 363 of the Bankruptcy Value and allow the Organization to increase the value of its assets for its stakeholders in a managed, court-supervised atmosphere.
In association with the suggested deal, A123 has obtained a dedication from Johnson Manages for $72.5 million in "debtor in possession" financing to include the Organization's continued functions during the pendency of the purchase procedure. The Organization has registered a number of traditional activities seeking court permission to keep support its business functions during the deal procedure, such as the continuing transaction of worker income, incomes and health advantages without disruption.
"We believe the resource buy agreement with Johnson Manages, in addition to a Area 11 processing, is in the best passions of A123 and its stakeholders at this time," said Bob Vieau, Primary Professional Official of A123. "We identified not to shift ahead with the formerly declared Wanxiang agreement as a result of unexpected and considerable difficulties to its achievement. Since exposing the Wanxiang agreement, we have at the same time been analyzing contingencies, and we are satisfied that Johnson Manages identifies the natural value of our automotive technological innovation and automotive business assets. We are also satisfied that we have obtained symptoms of attention that identify the value of our grid and commercial businesses. We are motivated by the considerable attention we have obtained, as several events have posted suggestions for they. As we shift through this deal procedure, we anticipate to proceed managing and working with clients and providers."
"Our attention in A123 Techniques is constant with our long-term development techniques and overall dedication to the development of the innovative battery market," said Alex Molinaroli, chief executive, Johnson Manages Power Alternatives. "Requirements for more cost effective automobiles keep increase, which is generating automotive producers to practice new technology across a wide variety of powertrains and associated power storage space solutions. We believe that A123's automotive abilities are a good supplement to our current profile and will further enhance Johnson Controls' place as a market innovator in this market."
The deal with Johnson Manages is being finished pursuant to Area 363 of the U.S. Bankruptcy Value and is topic to, among other things, higher or otherwise better provides to buy any or considerably all assets of the Organization, Judge acceptance, antitrust acceptance, any other such mortgage approvals as may be required by law, and other traditional circumstances. Given these circumstances, there can be no guarantee that the suggested deal will be consummated.
Additional details is available on A123's web page at www.a123systems.com or by contacting A123's Reorientating Hotline, toll- free in the U.S., at 1-800-224-7654. For phone calls coming outside the U.S., please switch +1 973-509-3190. Records and details can be found at a devoted web page administrated by the Organization's Statements Broker, Logan & Company: www.loganandco.com.
Latham & Watkins LLP and Richards, Layton & Handy are providing as legal consultants, Lazard is providing as financial consultant, and Alvarez & Marsal is providing as restructuring consultant to A123.
About A123 Systems
A123 Systems, Inc. (Nasdaq: AONE) is a leading developer and manufacturer of advanced lithium-ion batteries and energy storage systems for transportation, electric grid and commercial applications. The company's proprietary Nanophosphate® lithium iron phosphate technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density, increased safety and extended life. A123 leverages breakthrough technology, high-quality manufacturing and expert systems integration capabilities to deliver innovative solutions that enable customers to bring next-generation products to market. For additional information please visit www.a123systems.com.Safe Harbor Disclosure
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are subject to risks, uncertainties and other important factors, including statements with respect to the expected benefits of A123's proposed asset sale and financing transactions with Johnson Controls, the potential of the transactions and Chapter 11 filing to create value for A123 and its stakeholders, the satisfaction of conditions to closing of the transactions, the anticipated growth of the market for energy efficient vehicles, the expectation that a Chapter 11 filing will enable A123 to sell its automotive and other assets in an orderly manner and maximize value to its stakeholders, and the necessity of bankruptcy court and other approvals, including antitrust and other regulatory approvals, to conduct and complete the transactions and other potential asset sales. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: failure to obtain required bankruptcy court and other approvals, failure to satisfy the conditions to closing of the transactions, delays in the development of A123's products, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which A123 and Johnson Controls operate, and other risks detailed in A123 Systems' quarterly report on Form 10-Q for the quarter ended June 30, 2012 and other publicly available filings with the Securities and Exchange Commission. All forward-looking statements reflect A123's expectations only as of the date of this release and should not be relied upon as reflecting A123's views, expectations or beliefs at any date subsequent to the date of this release.Source : A123 Systems