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Vectrix Enters Into Asset Purchase Agreement, Follows GM's Lead

 
1,210 views Sep 30, 2009

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After weeks of speculation about the fate of Vectrix Corporation, a premiere brand of electric scooters, "Vectrix has filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code", and Vectrix's "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."

This filing is similar to the restructuring that GM just completed, whereby the viable assets of the corporation were sold to New GM, and the non-viable assets were auctioned / sold off to interested parties, and those procedes used to compensate stakeholders of Old GM.

Electric bikes, scooters and motorcycles will be an important component of our future transportation industry, and Vectrix's restructuring is as timely as GM's, so that they can continue playing an important role in that future.

The press release from Vectrix Corporation can be seen here.

Vectrix Corporation homepage can be seen here.





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Comments (4)

  1. By  Jon V Posted: 9/30/2009 12:04pm PDT

    WHY did Vectrix go bankrupt? Electric scooters not selling?
     
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  2. By Jason M. Hendler Posted: 9/30/2009 5:13pm PDT

    Vectrix sold many scooters, but their overhead was too great. They need a strategy similar to Tesla Motors, in which they have only a few stores in areas where there is high demand for electric scooters.
     
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  3. By  David Herron Posted: 10/1/2009 8:52am PDT

    I wrote up a pretty detailed examination of why Vectrix had to go bankrupt. Jason is about right, their costs were too high but there is more to it. Why Vectrix is teetering on bankruptcy, pt. I
     
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  4. By  David Herron Posted: 10/1/2009 8:53am PDT

    Seems the commenting system didn't include the URL: http://www.examiner.com/x-14333-Green-Transportation-Examiner%7Ey2009m7d17-Why-Vectrix-is-teetering-on-bankruptcy-pt-I
     
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