Chevrolet Volt battery maker A123 goes bankrupt

A123 Systems, the Bay State battery maker that received millions in government grants, has filed for bankruptcy. The Waltham-based company sought Chapter 11 bankruptcy protection today after failing to make a debt payment that was due yesterday. A123 Systems listed about $460 million in assets and $376 million in debt in the filing in U.S. Bankruptcy Court in Delaware. “The company may not have sufficient cash to fund operations,” the company warned in a filing with the U.S. Securities and Exchange Commission. A123 Systems — which makes high-tech batteries for electric cars with technology developed at MIT — received nearly $250 million in federal grants to build a factory in Livonia, Mich., with the promise to create some 38,000 U.S. jobs. The company also received a $5 million loan from the Patrick administration to expand in Massachusetts. Read more
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