Quantum Fuel Systems Technologies Worldwide Inc. (NASDAQ: QTWW) announced Wednesday morning that it has filed for Chapter 11 bankruptcy protection in federal bankruptcy court for the central district of California. Quantum expects the filing to expedite its quest for a “stalking horse bid.”
Subject to court approval, the company has obtained $6 million of debtor-in possession financing, from Douglas Acquisitions, an affiliate of an existing second-position secured creditor.
Quantum manufactures and sells fuel systems and storage tanks for vehicles fitted for compressed natural gas (CNG) fuel.
Last week the company said that it had failed to make a $2.7 million principal payment on its credit facility, which also constituted a default on its senior secured notes with an aggregate principal value of $12.5 million.
The company came public in July of 2002 and went through a reverse one-for-20 stock split in February of 2011 and a one-for-four reverse split in July of 2013. The company was originally spun out of Impco Technologies, which has since merged into Fuel Systems Solutions Inc. (NASDAQ: FSYS).
Quantum stock traded at $0.16 in the early afternoon Wednesday, down 58%, in a 52-week range of $0.13 to $3.13. The low was posted earlier in the morning.