Quantum Transfers Tecstar Automotive Business Operations To WB Automotive Holdings
Quantum Fuel Systems Technologies Worldwide, Inc. announced that 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 substantially all of the business operations of the Tecstar Automotive Group (TAG) business segment to WB Automotive Holdings, Inc. ("WB Holdings"), an affiliate of WB QT.
As part of a restructuring of certain debt obligations of TAG, which were guaranteed by Quantum, the TAG operations were transferred and assigned to WB Holdings in full satisfaction of approximately $20.3 million in debt obligations. As part of the restructuring, 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.