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.
Earlier coverage:
- Why Vectrix is teetering on bankruptcy, pt. III
- Why Vectrix is teetering on bankruptcy, pt. II
- Why Vectrix is teetering on bankruptcy, pt. I
- Vectrix pondering bankruptcy
Subscribe via: Facebook, Friend Feed, Twitter, E-Mail var a2a_config = a2a_config || {}; a2a_config.linkname = “Green Transportation Examiner”; a2a_config.linkurl = “http://rss.examiner.com/RSS-14333-Green-Transportation-Examiner.rss”;
For more info:
Vectrix is dead, Long Live New Vectrix
Vectrix to sell assets, file for Ch. 11
Bankrupt Vectrix to sell assets for $5M
Vectrix Files For Ch 11 Bankruptcy, Seeks October Auction
- Is Tesla finagling to grab federal NEVI dollars for Supercharger network? - November 15, 2022
- Tesla announces the North American Charging Standard charging connector - November 11, 2022
- Lightning Motorcycles adopts Silicon battery, 5 minute charge time gives 135 miles range - November 9, 2022
- Tesla Autopilot under US Dept of Transportation scrutiny - June 13, 2022
- Spectacular CNG bus fire misrepresented as EV bus fire - April 21, 2022
- Moldova, Ukraine, Georgia, Russia, and the European Energy Crisis - December 21, 2021
- Li-Bridge leading the USA across lithium battery chasm - October 29, 2021
- USA increasing domestic lithium battery research and manufacturing - October 28, 2021
- Electrify America building USA/Canada-wide EV charging network - October 27, 2021
- Komatsu and Honda create electric micro-Excavator - July 10, 2021
Pingback: Is Hesketh Motors signaling the rebirth of Vectrix? | The Long Tail Pipe
Pingback: Battery maker GP Batteries has bought New Vectrix and the Vectrix assets | The Long Tail Pipe