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Vectrix Files Chapter 11 Bankruptcy

Wednesday, September 30, 2009
Electric scooter manufacturer Vectrix has filed Chapter 11 Bankruptcy. The move has long been expected but a press release from the Rhode Island firm has made it official. The move corresponds with a potential buyout, Vectrix’s PR referring to it as an “asset purchase agreement” with a new company, dubbed “New Vectrix LLC.”

2009 Vectrix VX-1
It looks like Vectrix will survive, at least in some form. The Rhode Island company has filed Chapter 11 bankruptcy protection and entered an "asset purchase agreement."
Vectrix now enters Bankruptcy Court, where the company’s assets and liabilities will be up for auction. New Vectrix LLC is “sponsored” by GH Venture Partners LLC, a venture capitalist firm which owns stakes in a number of companies including Adam Aircraft Industries. New Vectrix LLC does not figure to be outbid during the Bankruptcy process, however, Vectrix is still accepting bids up to an October 27th deadline. Got a couple million sitting around? Contact Vectrix CFO, John D. McGuinness, at 401-848-9993 ext 103, or via email at jmcguinness@vectrixusa.com.

As for the expected outcome, if New Vectrix LLC wins out the terms of the “asset purchase agreement” require it to put up $5,056,000 for purchase of the company, with a “cash payment of $1,750,000 plus the assumption of up to $3,306,000 in specified liabilities.”

The new company will extend the warranty of existing vehicles sold to dealers and consumers up to a $2,000,000 cap on claims filed “60 days post-petition.” Meanwhile, Vectrix’s Polish subsidiary will continue to manufacturer electric scooters, and “provide customers with accessories, spare parts and technical support.”

Current CEO Mike Boyles says of the bankruptcy move and New Vectrix buyout:

"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."

Looks like Vectrix will live to fight another day…

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Comments
denforent   July 2, 2014 10:25 PM
Everyone's a genius - want EV's to perform like gas scooters. Don't get it at all, do ya? I've owned a Vectrix VX1 for 5 years and ride it almost everyday. When I want MORE distance, I simply ask permission to plug in wherever I'm shopping or eating or... Never a problem! I just bought 2 of the brand new 2013 VX2 scooters at the bankruptcy auction because I believe gas is going thru the roof and I've not had a single problem with my VX1 (still running fine on original batteries). Own an EV, ride an EV then tell me how terrible they are! PS I also own a 2300cc Triumph Rocket III Touring and a Harley show bike but I most enjoy the fun of my Vectrix and the questions from folks who don't even know what an electric scooter is or what it CAN do.
Tim B -Wooooohooooooooo!  October 1, 2009 09:23 AM
YES!!!!!!! I love to see electric vehicle companies FAIL! Give me internal combustion engines!
bikerrandy -electric vehicles  September 30, 2009 10:06 PM
I'm not surprised. Any kind of vehicles based on batteries only are not yet practical in the real world. It's a pie in the sky dream. Today's batteries don't have enough oomph to last long enough compared to gasoline powered vehicles, let alone their price comparisons.
JC -niche market  September 30, 2009 12:25 PM
The problem I see with EV's whether it is motorcycles, scooters, or cars is that it is a small niche market. IMHO, Tesla was smart to go after the high end market where price is of little concern (and even they have gotten some government loans to make it) One of the problems is that in addition to such a small market is that a large number of your potential buyers are tinkering and converting to EV's on their own. Not an easy market to enter.
EAB -I would buy one....  September 30, 2009 11:30 AM
...if it had a 60 mile range. I ride 29 miles round trip. The range simply wasn't far enough. Even though 60 would work for me, I think the magic # is 100 miles. I think the Vetrix was something like "up to 40 miles" and in tests it could run down faster than that if throttle was used without discretion. At Mid Ohio's Vintage Motorcycle Days I said as much to the manufacturer and just told them if they couldn't get more range, they might as well pack up. Looks like they did.