Battery Maker That Received $249 Million From Obama Administration Declares BankruptcyS

A123 Systems, the company that builds the batteries for the Fisker Karma and for the upcoming Chevy Spark EV, has filed for Chapter 11 Bankruptcy Protection, according to court documents. This is a major blow for the Obama administration, which has invested heavily in green energy with other companies like Solyndra that have gone bust.

The bankruptcy filing lists that A123 Systems has $459.8 million in assets and $376 million in debts. Interest payments due today on loans were not expected to be able to be paid.

The government's investment in A123 was $249 million. President Obama stood behind the company, believing that they were the future of electric power. There he is pictured with two company executives in the rose garden. In 2010, the company hired 3,000 workers to produce batteries. This is what the president said about the company:

This is about the birth of an entire new industry in America, an industry that's going to be central to the next generation of cars. When folks lift up their hoods on the cars of the future, I want them to see engines and batteries that are stamped: Made in America.

According to the bankruptcy filing, Johnson Controls will be buying parts of A123.

Whereas A123 Systems, Inc. a Delaware corporation, has negotiated an asset purchase agreement with Johnson Controls, Inc. a Wisconsin corporation.

With the debate tonight, expect this to be a hot topic for Mitt Romney. But it should also be noted that Johnson Controls is from Wisconsin, just like Vice Presidential candidate Paul Ryan, and they also received stimulus funds from the government.