Another Federal Grant "green company" bankrupt

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Electric Car Battery Maker A123 Systems Files Bankruptcy

A123 Systems Inc. (AONE), the electric car battery maker that received a $249 million federal grant, filed for bankruptcy protection after failing to make a debt payment that was due yesterday.

The filing may fuel further political debate over government financing of alternative-energy and transportation businesses. Federal grants and loans to companies including A123, Fisker Automotive Inc. and Tesla Motors Inc. have drawn scrutiny from congressional Republicans following the September 2011 bankruptcy filing of solar-panel maker Solyndra LLC two years after it received a $535 million loan guarantee from the U.S. Energy Department.

http://www.bloomberg.com/news/2012-...a123-systems-files-bankruptcy.html?cmpid=yhoo





Note: this is a certified Non-Disgusting, Non-Hating media outlet.

 

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This will sound very familiar.

The Massachusetts firm dished out nearly $1 million to hire a powerhouse lobbying firm with close ties to President Barack Obama between 2007 and 2009, and two of its top executives made personal donations to several high-profile Democrats in Congress as it won federal funding for its efforts to build the next generation of lithium batteries for electric vehicles.

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The company managed to get several lawmakers in both parties to support its request for federal funding, securing almost $6 million during the end of the Bush administration and then a $250 million grant from the American Recovery and Reconstruction Act after Obama took office.



A123's stimulus grant accounted for 12.5 percent of the stimulus' $2 billion fund to support the manufacturing of advanced electrical vehicle components, making it one of the biggest beneficiaries among 29 companies that split the momney.

http://www.washingto...tway-power-play