Krystal enters pre-arranged Chapter 11, will emerge with all-electric vehicles
All operations, including manufacturing, sales and warranty support, will continue to operate as usual during the reorganization, company officials said.
Brea, Calif.-based Krystal Koach Inc. announced it is selling substantially all of its assets and operations to a strategic partner along with an existing investor through a pre-arranged voluntary Chapter 11 bankruptcy filing.
All operations, including manufacturing, sales and warranty support, will continue to operate as usual during the reorganization, company officials said.
Krystal Koach Inc. reported it has entered into an asset purchase agreement with Krystal Infinity LLC. Krystal Infinity LLC is an affiliate of publicly traded Thunder Sky Battery Ltd. a Hong Kong-based manufacturer of Thunder Sky Rare Earth Lithium-Ion batteries and affiliated products for the automotive industry. Krystal has reached an agreement with its major creditor and with Thunder Sky Battery Ltd. to allow for an efficient process.
Krystal's CEO Ed Grech will remain a major shareholder and CEO after the sale, with the company arranging for a debtor in possession financing facility with an affiliate of the purchaser to ensure that Krystal can manufacture and deliver vehicles through the sale process. Krystal is expected to emerge from Chapter 11 sale process in 60 to 75 days, according to Grech.
"The entire Krystal team is excited about the prospect of quickly implementing the sale through the Chapter 11 process, which will allow us to emerge within two months as a company with rock solid financial footing. Further, our partnership with Krystal Infinity, LLC allows us to continue our legacy of innovation by bringing the first battery powered vehicles to our market'' he said.
Along with the news, Krystal also announced the impending release of two new all-electric vehicles — the T.S. Luxury Electric Vehicle and the Krystal EV Bus.
The T.S. is an all-electric four passenger ultra-luxury sedan based on a heavily modified SUV chassis. The completely re-configured drivetrain is powered by Thunder Sky Rare Earth Lithium Ion batteries and a UQM Brushless Permanent Magnet motor.
The model is in the final design stages. A fully functioning prototype was successfully demonstrated and displayed earlier this month at "EVS 25", the World Battery, Hybrid and Fuel Cell Electric Vehicle Symposium and Exhibition in Shenzhen, China. Full production is expected in first quarter 2011.
Meanwhile, the EV bus, currently under development and slated for a mid-2011 production start, is based on the International 4000 Series chassis. This long-running Krystal favorite has been redesigned with an all-electric drive system including two Siemens motors, a Flender Combining Gear Box, long range Thunder Sky Rare Earth Lithium Ion batteries, and the Carrier Advantac All-Electric Air Conditioner.
The 27,500-pound Krystal EV Bus will be offered with a 102-inch wide body and seating to accommodate up to 38 passengers.
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