And there you go. Now this makes sense. Glad I only opened a small position. Granted, that document is mostly unreadable to me, but the English part is clear enough. Balls.
I believe dasaini500 is correct in his reading of the reports and events.
The $350 million is the figure Wanxiang says they will invest in the assets they purchased. If fits everything else they said about keeping the plants running in N. America.
The 0.61 figure tossed around is the ratio that creditors receive, 61 cents back for every dollar owed. That nearly lines up with $256 million (purchase price for the assets) divided by $376 million (reported debts). That ratio is 0.68, which may simply mean there are more than $376 million in debts. In fact, for the ratio of .61 the debt would be $419 million.
Checking the news articles, I did find this article and quote:
While the final sale price more than doubles Johnson Controls' initial offer, it won't be enough to provide a recovery to the battery maker's shareholders, who will be wiped out under the deal.
A123 filed for bankruptcy in October as demand for electric vehicles did not live up to expectations and it was forced to recall defective car batteries. Its customers include Fisker Automotive, General Motors Co and BMW.
If the foreign investment committee does not approve the sale in the coming weeks, Wanxiang could walk away, although it would forfeit a $25 million deposit that would go toward repaying A123's creditors.
If that were to happen, A123 could then go back on the block. Johnson Controls and NEC Corp of Japan made a final runner-up bid of about $251 million, according to Alex Molinaroli, president of Johnson Controls Power Solutions.
The only other company that qualified for the auction, Siemens AG of Germany, does not appear to have made a bid, according to a transcript of the auction.
If the foreign investment committee has not approved the sale by January 15, the deal could still close by transferring A123 to a trust controlled by U.S. citizens, which would not need CFIUS approval.
Wanxiang's money would then be turned over to repay the creditors of A123, which filed for bankruptcy with $376 million in liabilities.
The Chinese company is no stranger to investing in the United States.
Wanxiang generates about $1 billion in revenue in the United States by supplying parts to GM and Ford Motor Co and has bought or invested in more than 20 U.S. companies, many of them in bankruptcy, said a congressional report published in October.
The case is A123 Systems Inc, Delaware Bankruptcy Court, No. 12-12859.
Which contained this statement: "Receiving Court approval of our asset purchase agreement with Wanxiang and Navitas is an important step toward finalizing the sale of A123's assets, and we are now focused on CFIUS approval of the sale to Wanxiang, which we are confident that we will receive given the structure of this transaction," said Dave Vieau, Chief Executive Officer of A123. "We believe an acquisition by Wanxiang will provide A123 with the financial support necessary to strengthen our competitive position in the global vehicle electrification, grid energy storage and other markets, and we look forward to completing the sale."
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