Vectrix is dead, long live the New Vectrix?

Vectrix Corporation announced September 28, 2009 that it entered into an asset purchase agreement to sell most of its assets to New Vectrix LLC (“New Vectrix”), a Delaware limited liability company sponsored by GH Venture Partners LLC. They have also filed for chapter 11 bankruptcy. These moves were expected from announcements earlier this year. (see Vectrix pondering bankruptcy) The Vectrix Corporation was formed in 1996 to develop and commercialize a zero-emission electric motorcycle which was well regarded by many. It began selling motorcycles to the public in 2007 but was never able to achieve profitability. In early 2009 Vectrix management announced it was seeking “new funding” and would have to shut down the company if new funding could not be found.

According to a press release issued by Vectrix the process will be sale of the company’s assets, including its stock ownership of its European subsidiaries to either New Vectrix LLC or to another buyer who is determined by the Bankruptcy Court to have offered a higher and better bid. Vectrix is expecting to continue normal operations including their production plant in Poland to keep up the supply of accessories, spare parts and technical assistance. If “New Vectrix” wins the bidding to buy the Vectrix assets they have agreed to continue warranty coverage for prior customers under certain conditions. Vectrix Corporation is conducting a bidding process which they expect to end at the end of October 2009.

Clearly the offer by New Vectrix is not necessarily a done deal. The Bankruptcy process requires asset sales to be made at fair market value and Vectrix has opened a bidding process. The likely ensuing bidding process should produce a fair market value for the Vectrix assets. However if the rumors which have circled around the V is for Voltage Vectrix subforum are to be believed, corporate sales negotiations have been underway for months with a variety of factions and offers being floated.

New Vectrix is sponsored by GH Venture Partners who appears to specialize in corporate turnaround efforts. The Wall Street Journal reports that GH Venture Partners is teaming with GP Batteries, the battery supplier for the Vectrix, to form New Vectrix. Not much can be found about GH Venture Partners, however a 2005 article reports (among other things) they had arranged some earlier financing of Vectrix.

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About David Herron

David Herron is a writer and software engineer living in Silicon Valley. He primarily writes about electric vehicles, clean energy systems, climate change, peak oil and related issues. When not writing he indulges in software projects and is sometimes employed as a software engineer. David has written for sites like PlugInCars and TorqueNews, and worked for companies like Sun Microsystems and Yahoo.