Quantum Fuel Systems Technologies Worldwide, Inc. (Nasdaq: QTWW) announced it has signed and closed a series of transactions that restructures Quantum’s outstanding debt obligations to its secured lender, WB QT, LLC, and transfers all of the business operations of the Tecstar Automotive Group (TAG) business segment to WB Automotive Holdings, Inc., an affiliate of WB QT.
TAG operations were transferred and assigned to WB Holdings to satisfy approximately $20.3 million in debt obligations, according to a company release. Also, WB Holdings provided approximately $2.0 million of additional financing to Quantum. The transfer of the Tecstar business segment was structured as a voluntary surrender of assets under Article 9 of the Uniform Commercial Code.
Alan Niedzwiecki, President and CEO said, "The completion of this transaction allows us to more clearly focus our efforts on ‘green vehicle’ technology and our alternative energy products. Quantum is a leader in the development and production of advanced propulsion systems, energy storage technologies, and alternative fuel vehicles and applications including hybrid and alternative fuel vehicles. We are excited about the emerging ‘green vehicle’ programs with our leading OEM customers, including Fisker Automotive and the military and other government agencies."
TAG primarily consists of second stage manufacturing of specialty equipment for General Motors’ pick-up trucks and SUVs, engineering and design capabilities for concept vehicles, and distribution of conversion vehicles and automotive accessories through OEM dealer networks.
TAG’s business includes engineering and validation of appearance items and performance packages to OEM standards. Its completed systems carry a full OEM warranty and are distributed directly by the OEM to automotive dealerships.
About Quantum
Quantum Fuel Systems Technologies Worldwide, Inc., an integrated alternative energy company, develops advanced propulsion systems, energy storage technologies, and alternative fuel vehicles. Quantum’s portfolio of technologies includes advanced lithium-ion battery systems, electronic controls, hybrid electric drive systems, hydrogen storage and metering systems, and alternative fuel technologies that enable fuel efficient, low emission hybrid, plug-in hybrid electric, fuel cell, and alternative fuel vehicles. Quantum’s powertrain engineering, system integration, vehicle manufacturing, and assembly capabilities provide fast-to-market solutions to support the production of hybrid and plug-in hybrid, hydrogen-powered hybrid, fuel cell, alternative fuel, and specialty vehicles, as well as modular, transportable hydrogen refueling stations. Quantum’s customer base includes automotive OEMs, dealer networks, fleets, aerospace industry, military and other government entities, and other strategic alliance partners.
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