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A123 (AONE) should see at least four bidders come in to try and buy the company out of...

A123 (AONE) should see at least four bidders come in to try and buy the company out of bankruptcy at an auction that starts today. Johnson Controls (JCI +0.6%), NEC, Siemens (SI), and Wanxiang all qualified to bid for parts of the lithium-ion battery maker.
Comments (12)
  • MJ Murphy
    , contributor
    Comments (6) | Send Message
     
    To have multiple bidders is appropriate. What may not be appropriate is to have a foreign company obtain the technology thru a sell-off of a company that obtained start-up funding from the U.S, government through stimulus payments.
    6 Dec 2012, 03:01 PM Reply Like
  • edgw
    , contributor
    Comments (2) | Send Message
     
    What will this mean to those of us who hold thousands of shares. Are we entirely out of the picture?
    6 Dec 2012, 04:19 PM Reply Like
  • JL1585
    , contributor
    Comments (5) | Send Message
     
    MJ Murphy.. Why dont you buy it then, problem solved right?
    7 Dec 2012, 02:54 AM Reply Like
  • edgw
    , contributor
    Comments (2) | Send Message
     
    I'm an upset holder. What, if anything, will this means to we shareholders?
    6 Dec 2012, 03:34 PM Reply Like
  • roadking9800
    , contributor
    Comments (2) | Send Message
     
    I believe whoever buys A123, especially a company from overseas, should be required to pay back the money the USA government gave A123. After all, it is our money.....
    6 Dec 2012, 04:16 PM Reply Like
  • haleiwahu
    , contributor
    Comments (3465) | Send Message
     
    Problem is US was never a creditor. US gave A-one the money through an applied grant that was intended to give the government a pat on the back as the Grantor's letting their originators shine as stimulator's in an otherwise bleak environment. Turns out it was just another colossal blunder of this failed administration.
    7 Dec 2012, 12:08 PM Reply Like
  • Ron Reed
    , contributor
    Comments (282) | Send Message
     
    As a shareholder you will likely not see any return at all. The AONEQ stock will simply no longer be listed and the buyer will take all the assets. It is very rare that Bankruptcy courts have the buyer pay anything at all to the shareholder. Beyond that, WXG has a significant interest in the operation holding first return since it is the DIP (debtor in possession) They will be paid back first before any other debts are paid. I'm not certain where the US Gov't is in terms of place in line for pay-back of investment, but between what they owe to WXG and what they owe the US G. that pretty well covers all the value of the physical assets much less the rest of the debt they owe. If you hold shares you may as well hang it up for any return.
    6 Dec 2012, 05:08 PM Reply Like
  • haleiwahu
    , contributor
    Comments (3465) | Send Message
     
    To my knowledge, the money that the government gave Aone was a grant and not a loan, specifically a secured loan. There's no way the US will be paid back. Even the creditors that had secured their position will be paid only pennies on the dollar. Then there will be nothing left and this whole mess will have been a bad dream for all others especially the investors.
    7 Dec 2012, 12:11 PM Reply Like
  • John Petersen
    , contributor
    Comments (29666) | Send Message
     
    Since Wanxaing has already advanced $75 million of DIP financing to A123 and that debt has priority over everything, the net new proceeds of the auction will be on the order of $175 to $185 million. After paying A123's bankruptcy costs and creditor's claims there will be nothing left for stockholders.

     

    http://seekingalpha.co...

     

    The last pure play domestic lithium-ion battery developer standing is Altair Nanotechnologies (ALTI) which just announced a 1 for 6 reverse split sequel to the 1 for 4 reverse split they implemented in October 2011. Cumulatively the net effect on long-term holders is a 1 for 24 reverse. It currently appears that ALTI will be moving its principal operations to China over the next year.
    9 Dec 2012, 06:34 AM Reply Like
  • cranky44
    , contributor
    Comment (1) | Send Message
     
    They paid double what it was worth, Wanxaing knows what they are doing. Sell now ( at the bottom) and you will regret it.
    9 Dec 2012, 07:57 PM Reply Like
  • John Petersen
    , contributor
    Comments (29666) | Send Message
     
    A123 put out a story yesterday that said "Because the total purchase price for A123’s assets would be less than the total amount owed to creditors, the Company does not anticipate any recoveries for its current shareholders and believes its stock to have no value."

     

    http://yhoo.it/UwzUjT

     

    Anybody who continues to trade the stock needs to have his head examined.
    10 Dec 2012, 12:33 AM Reply Like
  • haleiwahu
    , contributor
    Comments (3465) | Send Message
     
    Hard to argue with that! Let's see, 0 profits * my hope to make a profit on their failures = hmmmm
    16 Dec 2012, 11:17 AM Reply Like
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