Sale of Assets & Bankruptcy


 

TIDMVRX 
 
RNS Number : 8855Z 
Vectrix Corporation 
29 September 2009 
 

Date: September 28, 2009 
On behalf of: Vectrix Corporation ("Vectrix" or "the Company") 
 
 
For immediate release 
 
 
Middletown, R.I. - 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 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. 
 
 
Contact: 
 
 
Vectrix Corporation (www.vectrix.com) 
Mike Boyle, CEO (401) 848-9993, ext 102 or mboyle@vectrixusa.com 
John McGuinness, CFO (401) 848-9993, ext. 103, or jmcguinness@vectrixusa.com 
 
 
HSBC 
Nick Donald / Nic Hellyer +44 (0)20 7991 8888 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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