Quantum Fuel Systems Technologies Worldwide, a provider of natural gas storage and delivery systems, integration and vehicle system technologies, announced that an event of default under the company’s credit facility with Bridge Bank occurred on March 14, 2016, as a result of the company’s failure to make a $2.7 million principal payment when the credit facility matured on March 14, 2016.

The event of default under the Bridge Bank credit facility also constituted an event of default under the senior secured convertible notes issued by the company on September 15, 2013 and June 29, 2015, which have an aggregate principal balance of $12.5 million. The convertible notes are secured by a second lien on substantially all of the company’s operating assets pursuant to the terms of separate security agreements between the company and Kevin Douglas, as collateral agent for the holders of the convertible notes.

The convertible notes are subordinate in all respects to the rights of the lender pursuant to the terms of separate subordination agreements between the lender and the collateral agent.

The company has engaged Mackinac Partners as its financial advisor to assist the company with negotiating with its creditors, and evaluating all options that may be available to the company. There can be no assurance that the company’s efforts will be successful or that the company will not have to seek protection under federal bankruptcy laws.