Automotive lithium-ion battery maker A123 Systems Inc. (AONE) announced that on Thursday the United States Bankruptcy Court for the District of Delaware granted the Company's request for certain "first day" orders that help support its business.
The court granted A123 interim approval to use $15.5 million of its $72.5 million Debtor-in Possession or "DIP" financing from Johnson Controls Inc. (JCI) to support the Company's operations throughout the transaction process.
A court hearing for final approval of the DIP has been scheduled for October 30, 2012. The company also received approval to, among other things, continue paying employee wages, salaries, benefits and other employee obligations.
On Tuesday, A123 Systems, along with all of its U.S. subsidiaries, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The company said that its subsidiaries located outside the U.S. were not included in the filings.
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