ELECTRIC VEHICLE Manufacturer Vectrix - the outfit behind the Vectrix electric scooter that TMR tested late last year - has officially filed for Chapter 11 bankruptcy protection in the US this week.
Vectrix is expected to follow the same path taken by GM, using bankruptcy protection to sell itself to New Vectrix LLC, a company based in Delaware and owned by GH Venture Partners LLC.
Founded in 1996, Vectrix spent nearly ten years developing the technology for its electric scooters before beginning production in 2007.
The company lost money on sales of its scooters and had to rely on equity finance to continue its operations.
Sales improved through 2008, but with the economic downturn causing the capital markets to dry up and banks reluctant to loan money to an emerging company in a difficult time, Vectrix's future looked dim.
According to a statement issued by Vectrix, GH Venture Partners has entered the leading bid, offering a cash payment of US$1,750,000 and the assumption of up to US$3,306,000 in specified liabilities, for a total of up to $5,056,000.
As part of the deal, the sale will include patents, trademarks and licences for Vectrix's electric scooter range.
The company has listed assets and debts in the range of US$10,000,000 to US$50,000,000.