CFIUS, headed by Obama’s outgoing Treasury Secretary, Timothy Geithner, is in the process of reviewing the transfer of A123 Systems’ technology to the Shanghai-based Wanxiang Group in a bankruptcy sale. Wanxiang’s founder and CEO is Chinese billionaire Lu Quanqiu, China’s 18th richest man and a 44 year member of China’s National People’s Congress.
In a maneuver described as “novel,” Wanxiang has established an “independent trust” to buy a majority of A123’s assets while awaiting a decision from CFIUS. “This ‘trust’ mechanism shouldn’t fool anyone,” Popps noted, “at the end of the sale, this technology will still be Chinese-owned unless CFIUS follows the mandate in today’s Inaugural address.”
Waxiang is buying AONEQ out for $260MM and investing another $350MM doing a relaunch however after yesterdays news it appear the US Gov't is looking to "BAIL OUT" AONEQ so either way they are the next emerging bankruptcy play.
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