Johnson Controls files appeal of A123 bankruptcy sale
Company objects to delay in payment of break-up fee and expense reimbursement
MILWAUKEE, Dec. 17, 2012
MILWAUKEE, Dec. 17, 2012 /PRNewswire/ --Johnson Controls filed an appeal in
bankruptcy court today of the Dec. 11, 2012 sale order approving Wanxiang's
purchase of A123 Systems. As part of the sale order, the court ordered the
escrow of the break-up fee and expense reimbursement due to the company under
its stalking horse agreement with A123. Johnson Controls is appealing the sale
order to obtain the breakup fee and expense reimbursement to which it is
entitled under that agreement and which were previously approved by the
"We appreciated the opportunity to serve as stalking horse, which resulted in
significant value to the estate, creditors and employees," said Alex
Molinaroli, president, Johnson Controls Power Solutions.
A123 was directed to place the breakup fee and expense reimbursement in escrow
after A123's creditors' committee suggested to the court that Johnson Controls
was lobbying against the sale of A123 to Wanxiang.
"As a market leader and major employer with significant operations in the
United States, we have expertise and insights regarding the industries we
serve, which are important resources for leaders and decision makers. Our
representatives regularly provide educational material and expert opinions on
many topics including advanced batteries, lithium-ion technology and the
various applications they serve," said Molinaroli.
Johnson Controls maintains an active government relations function that
involves regular interaction with policy makers and agencies on the full range
of issues relevant to the company. The activities of Johnson Controls'
representatives involving public officials are consistent with First Amendment
rights to free speech and are strictly governed by the company's ethics policy
and comply with government regulations.
The significant issue of U.S. regulatory approval required for any sale of
A123 to Wanxiang has been a constant challenge dating back to Wanxiang's
original failed attempt to acquire A123 earlier in 2012 prior to bankruptcy.
Johnson Controls has consistently maintained that national security questions
tied to the core technology used in all of A123's businesses represent a risk
to the sale which cannot be dismissed until resolved by the government review
Johnson Controls shares concerns that have been voiced by members of Congress
and other interested parties and therefore will continue to monitor this
"Should the sale of A123 Systems to Wanxiang not be completed for any reason,
Johnson Controls remains open to considering future opportunities to acquire
relevant portions of A123's assets, keeping this critically important
technology in the United States, preserving jobs and furthering the purpose of
the American Reinvestment and Recovery Act," said Molinaroli.
About Johnson Controls
Johnson Controls is a global diversified technology and industrial leader
serving customers in more than 150 countries. Our 170,000 employees create
quality products, services and solutions to optimize energy and operational
efficiencies of buildings; lead-acid automotive batteries and advanced
batteries for hybrid and electric vehicles; and interior systems for
automobiles. Our commitment to sustainability dates back to our roots in 1885,
with the invention of the first electric room thermostat. Through our growth
strategies and by increasing market share we are committed to delivering value
to shareholders and making our customers successful. In 2012, Corporate
Responsibility Magazine recognized Johnson Controls as the #5 company in its
annual "100 Best Corporate Citizens" list. For additional information, please
About Johnson Controls Power Solutions
Johnson Controls Power Solutions is the global leader in lead-acid automotive
batteries and advanced batteries for Start-Stop, hybrid and electric
vehicles. Our 50 manufacturing, recycling and distribution centers supply
more than one-third of the world's lead-acid batteries to major automakers and
aftermarket retailers. Through our innovations we are building the advanced
battery industry for hybrid and electric vehicles. We were the first company
in the world to produce lithium-ion batteries for mass-production hybrid
vehicles. Our commitment to sustainability is evidenced by our world-class
technology, manufacturing and recycling capabilities.
CONTACT: (414) 524-2945
SOURCE Johnson Controls
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