Battery Company Files For Bankruptcy, Gets $1 Million From Feds The Same Day
The Energy Department has supported A123 Systems, Inc., which produced batteries for electric vehicles, through thick and thin.
The company received a $946,830 payment, part of a larger grant, on the day it filed for Chapter 11 bankruptcy protection in mid-October.
The company revealed the Oct. 16 payment in a letter this week to Sens. Chuck Grassley (R-Iowa) and John Thune (R-S.D.), who have questioned federal financing for the company.
The company won approval for $249 million in grant funding in 2009 but didn’t draw the whole thing. Reuters has more here, including Energy Department response.