AONEQ auction granted.

I still have part of my initial position on A123 Systems purchased at $0.06 per share. I plan to keep the remaining shares and wait for auction results. 

http://www.newjerseybankruptcynow.com/judge-approves-bidding-process-for-a123-bankruptcy-auction/

Judge Approves Bidding Process for A123 Bankruptcy Auction

Failed electric car-battery maker A123 Systems has been granted court permission to move forward with an auction of its assets that will take place on December 6.

U.S. Bankruptcy Judge Kevin Carey approved final bidding procedures for the auction that will include interested bidders such as U.S. auto parts maker Johnson Controls Inc. and Chinese auto parts maker Wanxiang Group Co. Initially, creditors and the U.S. trustee voiced concerns that other bidders would be left out of the process due to bid protections that would be afforded to leading bidder Johnson Controls. However, Judge Carey overruled these objections to the $2.5 million breakup fee Johnson will receive if it's outbid by competitors. The company would also receive $3 million for expenses.

The breakup fee was reduced from an initial $3.75 million to its current $2.5 million, and expense allocations were lowered from $4 million to its current $3 million. Currently, Johnson has bid $125 million for the company' assets, but other companies have expressed interest in the auction following the breakup fee reduction.

The auction process has resulted in scrutiny from lawmakers because A123 Systems received a $130 million grant from the U.S. Department of Energy.

However, the company was forced to file for protection underbankruptcy law in October for several reasons, including significant drops in sales as well as recalls. A123 had struck a $465 million bankruptcy deal with bidder Wanxiang to help the company overcome its financial woes. However, the agreement fell apart after A123 failed to comply with the terms of the rescue package.