Car battery maker A123 files for bankruptcy

Electric car battery maker A123 Systems filed for Chapter 11 bankruptcy on Tuesday, after the company said it expects to default on debt payments.

The company had $459.8 million in total assets and $376 million in debt as of Aug. 31, according to documents filed in U.S. Bankruptcy Court in Wilmington, Del. Tuesday.

A123 said on Monday that it expects to miss its October interest payment on $143,750,000 worth of 2016 corporate notes. The company said it also expects to miss a payment on another $2,759,000 worth of notes.

A123, based in Waltham, Mass., manufactures lithium ion batteries in Asia, Europe and North America, including batteries for plug-in hybrid and electric cars.

The company's bankruptcy filing comes just two months after Chinese auto parts maker Wanxiang Group Corporation announced plans to invest up to $465 million in A123, including an initial credit extension of $25 million.

In 2009, A123 received $249 million in federal funding for advanced battery technology manufacturing at two sites in Michigan -- Romulus and Brownstown -- as part of a $2.4 billion stimulus package.

By Aaron Smith and Emily Fox @CNNMoneyTech October 16, 2012