• Sep 29th 2009 at 4:05PM
  • 4
Vectrix scooter - Click above for high-res image gallery

Vectrix has officially filed for Chapter 11 bankruptcy protection. Much like what recently took place with General Motors and Chrysler, the old company will be purchased by an entity called New Vectrix LLC in relatively short order unless another interested party comes along and presents a better offer to the bankruptcy judge. Production of the electric scooter in Poland isn't expected to be affected.

Says the company: "The total purchase price consists of a cash payment of $1,750,000 plus the assumption of up to $3,306,000 in specified liabilities for a total purchase price of up to $5,056,000." We're not exactly experts on the subject, but a bit over $5 million doesn't seem like too bad a deal for a ready-to-go electric vehicle manufacturer.

Interested? Find all the details in the press release pasted after the break. Thanks for the tip, Giuliano!

[Source: Vectrix]


Vectrix Enters Into Asset Purchase Agreement

MIDDLETOWN, R.I., Sept. 28 /PRNewswire/ --- Vectrix Corporation (AIM: VRX) (www.vectrix.com), a leader in Personal Electric Vehicles, announced today that it has entered into an asset purchase agreement to sell most of the assets of the Company to New Vectrix LLC ("New Vectrix"), a Delaware limited liability company sponsored by GH Venture Partners LLC. As part of the agreement, Vectrix has filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code in Wilmington, Delaware whereby the sale of the assets, including its stock ownership of its European subsidiaries, will be effected pursuant to section 363 of the Bankruptcy Code. The assets will be sold pursuant to a sales and procedures order that is anticipated to be approved by the Bankruptcy Court to either New Vectrix LLC or to another buyer who is determined by the Bankruptcy Court to have offered a higher and better bid for the assets of the Company. During this process, the Company expects to continue normal business operations consistent with its obligations as a chapter 11 debtor-in-possession company under the jurisdiction of the Bankruptcy Court. The Company's subsidiary, Vectrix Poland Sp. z.o.o., will continue to produce the Vectrix bike and will provide customers with accessories, spare parts and technical support.

Commenting on the sale, Mike Boyle, CEO of Vectrix, said, "This transaction provides a platform to continue the Vectrix brand and its advanced electric vehicle technology. We want to express our appreciation to our partners and customers for their continued patience and support during this transition."

Terms of Asset Purchase Agreement

Under the Asset Purchase Agreement, New Vectrix LLC would purchase substantially all of the Company's assets and assume certain of the Company's liabilities through a supervised sale under section 363 of the Bankruptcy Code. Providing New Vectrix LLC is the winning bidder they have also agreed to extend warranty coverage on the Vectrix vehicles previously sold to dealers and consumers up to a $2,000,000 cap for claims filed 60 days post-petition. The total purchase price consists of a cash payment of $1,750,000 plus the assumption of up to $3,306,000 in specified liabilities for a total purchase price of up to $5,056,000, but is subject to higher and better bids, approval of the Bankruptcy Court and customary closing conditions. The Company expects to engage in a bidding process with other interested parties. Those interested in submitting bids should contact John D. McGuinness, Chief Financial Officer, at 401-848-9993 ext 103, or via email at jmcguinness@vectrixusa.com, as soon as possible as competing bids are expected to be due by October 27, 2009.

The Company's report and accounts for the year ended September 30, 2008 will not be published before September 30, 2009. On that date, trading on AIM in the Company's securities will have been suspended from trading for six months, and as a consequence of AIM Rule 41 those securities' admission to AIM will be cancelled with effect from October 1, 2009.

About Vectrix Corporation

Vectrix Corporation was formed in 1996 to develop and commercialize zero-emission vehicle platform technologies focused on two-wheel applications. The single focus of Vectrix has been to provide clean, efficient, reliable and affordable urban transportation. Vectrix Corporation has headquarters in Middletown, R.I., engineering and test facilities in New Bedford, Mass., sales offices in the UK and a manufacturing facility in Wroclaw, Poland

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    • 1 Second Ago
      • 5 Years Ago
      Dang, wish I had had $5e6 to buy the co. First order of business: strip all bikes of big, ugly bulky, plastic fairings. They would weigh less, cost less, and look better.
      • 5 Years Ago
      If companies in financial trouble are allowed to put all of their "good" assets into a new entity while leaving all of their "junk assets" for the creditors then the Right of Contract is DEAD.

      When gov’t refuses to enforce contracts, any new companies ability to secure private capital or open lines of credit IS DEAD because creditors & stockholders have ZERO security.

      The only "investors" left will be the redistribution of taxpayer money.

      This dangerous trend will KILL the very innovation we NEED to get off of foreign oil.

      Vetrix (and GM) should have been liquidated and their assets purchased by more competent capitalists who are willing to invest and manage their OWN money.

      BTW, Capitalists are YOU and ME who invest OUR SAVINGS in business in order to turn a profit.

      Crony Capitalists are GIANT Corporations who use Political Influence to secure for themselves TAXPAYER money and GOV'T REGULATION designed to kill their small business competitors.

      Today’s Crony Capitalism is NOT Fee Market Capitalism.

      When the Crony Capitalist's (Keynesian) Central Planning fails, they blame the free market which was never free due to all the regulation and central planning. Then the Crony Capitalists can use their political influence to take MORE taxpayer money in the form of "Bailouts" and "loans".

      It is ONLY a “loan” when there is sufficient collateral to cover the debt upon liquidation. If there is insufficient collateral, then it a GAMBLE which upon failure results in taxpayer funds REDISTRIBUTION.

      This "Progressive" trend can (and will) lead us into Marxism! (the crony-capitalists are boiling the We, the Sheeple frog)
        • 5 Years Ago
        You know, had these idiots simply made the scooter have a classic Italian look like the Vespa or Stella or maybe a more contemporary American look like the Honda Ruckus, they would have sold thousands.

        Too bad, too bad.

      • 5 Years Ago
      Reasons for failure:

      1) Too expensive
      2) NIMH instead of lithium
      3) Oil prices tanked
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