The U.S. Energy Department will not give A123 Systems Inc. the balance of a $249 million grant, a department official said on Monday, a day after the bankrupt battery maker was bought by a Chinese company.
The official, who asked not to be identified because the proceedings are ongoing, said the end of the grant payouts was made clear to all parties who participated in last week's auction for the company.
A123 will be sold to Wanxiang Group, pending court and regulatory approval, after the Chinese company outbid Johnson Controls Inc of Milwaukee.
Alex Molinari, president of Johnson Controls Power Solutions, said he expected the sale to be approved by the Delaware Bankruptcy Court on Tuesday.
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