U.S. company and Chinese company battle to buy A123 out of bankruptcy

A123, a government-backed battery maker, filed for bankruptcy relief under Chapter 11 in October.  The plan was to sell its battery business to Johnson Controls, a U.S.company for $125 million.  However, the sale will be subject to the highest bidder at an auction this month.  A company from China, Wanxiang Group Corp, is interested in buying A123’s battery business at the auction.

However, because A123 has ties to federal agencies and the military, some senators are worried that the sale could compromise national security.  For more details on this story read, “Chinese bid for A123 may raise security risks: Senators.”