A123 Systems, Inc. (AONE) disclosed in a regulatory filing that it expects to be in default under certain of its material debt agreements, as it does not expect to timely pay this month's interest payment due today under the 2016 Notes. Similarly, the company does not intend to timely pay a 6 percent P&I Payment due today, under the 6 percent Notes.
The company said it is considering a broad set of strategic alternatives to address its liquidity constraints, but noted that there is no assurance that it will be able to pursue a strategic option that will allow it to continue to operate its business as a going concern.
A123 Systems said it may not have sufficient cash to fund operations and may need to seek the protections provided under the U.S. Bankruptcy Code to, among other things, obtain access to new financing and facilitate one or more of the transactions it is contemplating.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.