Automotive News reports A123 Systems, an electric vehicle battery manufacturer, received a disbursement check from the federal government on the same day the company filed for bankruptcy. On Oct. 16, A123 received $946,830 as the latest portion of a clean energy grant from the US Department of Energy. That was the same day A123 Systems filed for Chapter 11 bankruptcy protection following a failed attempt to secure funding from Chinese parts supplier Wanxiang Group. Of the original grant, $115.8 million is still outstanding, and despite the company's monetary woes, A123 Systems says it may still need the grant to update or expand its manufacturing capacity.

Republican Senators John Thune and Chuck Grassley wasted no time blasting the disbursement check as careless spending. The two issued a statement saying, "The Department of Energy needs to answer for why it appears to put federal grants on auto-pilot to the detriment of US taxpayers. This can't stand."

The Department of Energy, meanwhile, responded by saying the grant program requires companies to submit invoices detailing their progress toward predetermined goals before any funds can be issued.

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    • 1 Second Ago
      • 2 Years Ago
      So they took the money and ran? What a shock.
      • 2 Years Ago
      The Department of Energy responded by saying the grant program requires companies to submit invoices detailing their progress toward predetermined goals before any funds can be issued." OK thats Fine, but the OBVIOUS!!!!! question here is what??????? HOW MUCH PROGRESS MUST BE MADE TO QUALIFY???? Hell intallilng a few screws into a CAR is Progress but certainly not worth a million TAX PAYER $$$$$$$$ WTF.... CLEARLY another DUMBACRATIC snow Job.... STOP THE SPENDING !!!!!!!
      • 2 Years Ago
      Doesn't surprise me.
      • 2 Years Ago
      The technology and manufacturing sometimes uses bankruptcy as a tool to stay in business in a down economy. GM needed a hefty bankruptcy and a bailout to stay in business.
      • 2 Years Ago
      How about the federal government gets out of the Venture Capital biz altogether?
      dave and mary
      • 2 Years Ago
      Will this finally silence the ones who think Bush was bad?
        John Perry
        • 2 Years Ago
        @dave and mary
        NO! NOTHING, including 4 dead Americans, will EVER stop the obamaites supporting their leader.
          • 2 Years Ago
          @John Perry
          How many American troops were killed in the Civil war started by democrat slave owners? Now many American troops were killed in WW2 with a democrat President and Congress? How many American troops were killed in Korea with a democrat President? How many American troops were killed in Viet Nam with a democrat president? See, we can do the blame game too.
        • 2 Years Ago
        @dave and mary
        Is this the same GW Bush who LOST $6 billion in cash in the sands of Iraq? Lost, not wasted- 20 to 30 billion was wasted in contracting fraud. We are talking LOST, as in completely unaccounted for. As in 'I thought you had it. Ooops! Don't tell mom!' LOST.
      • 2 Years Ago
      It's disturbing the government want's to go after JP Morgan for losing a few billion of their own money in trading errors, but Jon Corzine (Obama's Buddy) steals millions of clients money including from farmers and gets O's blessing with no charges to be filed. Then we have these gifts.
      • 2 Years Ago
      Obama = a stiff. Steven Chu is his understudy.
      • 2 Years Ago
      What's the big deal? Nowadays corporations go in and out of Ch. 11 like you and I change underpants. It's just business as usual.
      • 2 Years Ago
      nothing new there.Same old Obama
      • 2 Years Ago
      Oh come on, it was just a little thank-you check from the american taxpayer, nothing wrong with a little farewell gift.
      • 2 Years Ago
      I'm going to submit my pre-determined goal of going bankrupt so the Dept of Energy can send me a million dollar check. It's time to rename them the Dept of Idiots. It seems to be a pre-requisite that in order to get a grant from this Administration you either have to be a big donor or a 'green energy' company going bankrupt.
        • 2 Years Ago
        I'm right behind you. I really ready to receive some of this hope and CHANGE they keep talking about.
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