Nov. 2, 2009 – New company in line to take over Vectrix
November 2, 2009
Filed under Features
A company tied to the venture capital community has stepped forward to be a possible player in the future of a manufacturer of electric, two-wheeled vehicles.
That manufacturer, Vectrix, filed for Chapter 11 bankruptcy in September. According to the Chapter 11 report, the company had tried unsuccessfully to find a buyer and on July 30, made the decision to seek financial relief.
Vectrix later received bids to purchase substantially all of the corporation’s assets. The highest bidder was New Vectrix, a Delaware limited liability company sponsored by GH Venture Partners, a company founded in 1983 as an international private merchant banking firm, according to its Web site.
Under the bid, New Vectrix would pay more than $5 million, including a cash payment of $1.75 million plus up to $3.3 million in liabilities. New Vectrix also has agreed to extend warranty coverage on Vectrix vehicles up to $2 million in claims.
Commenting on the sale in a press release, Vectrix CEO Mike Boyle 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.”
Vectrix’s subsidiary, Vectrix Poland Sp. z.o.o., has continued to produce the Vectrix bike and has provided customers with accessories, spare parts and technical support, according to the press release.
The press release, dated Sept. 28, also noted the bidding process for Vectrix had not concluded, meaning New Vectrix’s bid may not be the final purchase price. The press release said Vectrix expected to continue the bidding process with other interested parties.
According to the Chapter 11 filings, Vectrix owed its 20 largest creditors more than $4.2 million. Vectrix Corp., formed in 1996, had revenue of $6.7 million in its 2008 fiscal year, according to earlier reports in Powersports Business. At that time, the company said it had anticipated selling more than 750 two-wheelers in that fiscal period.
Vectrix Corp. had dealer networks in North America and Europe, and had headquarters in Middletown, R.I., engineering and test facilities in New Bedford, Mass., sales offices in the United Kingdom and production facilities in Wroclaw, Poland.
— Neil Pascale