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Thursday, February 7, 2013

A123 says unsecured creditors to get 65 percent of claims, (NYSE: JCI)

Unsecured creditors of A123 Systems Inc, a bankrupt maker of batteries for electric cars that had U.S. government backing, will likely collect around 65 cents for each dollar they are owed, according to court documents. The money largely comes from the sale of most of the company's assets to a unit of China's largest auto parts firm, Wanxiang Group. The acquisition closed last month.The $260 million sale sparked outrage among some members of Congress, who warned it was a transfer of sensitive technology developed with U.S. taxpayer money. However, the deal had the support of A123's committee of unsecured creditors and was approved by a U.S. government panel that oversees foreign investment.Wanxiang beat out the only other active bidder, Johnson Controls Inc of Milwaukee, in a court-supervised auction for the assets of A123, which is based in Waltham, Massachusetts.A123 said in its disclosure statement, which describes its plan for paying off debts, that holders of unsecured claims will receive about 65 percent of what they are owed.

Johnson Controls, Inc. (Johnson Controls) manufactures, installs and services automatic temperature regulation systems for buildings. Shares of JCI fell by 1.82% or $-0.5711/share to $30.77. In the past year, the shares have traded as low as $23.37 and as high as $35.50. On average, 4518970 shares of JCI exchange hands on a given day and today's volume is recorded at 1597708.