Ridley Motorcycle Company Bankruptcy (Suite)

ridleymotorcycleGot a little bit confused this morning when I read new court papers filed in Bankruptcy Court of the Western District Of Oklahoma showing that on December 29, 09 Ridley Motorcycle Company filed not only under Chapter 11 but also under Chapter 7 with a meeting of creditors scheduled February 2, 2010. I am not a lawyer, but got the explanation by getting the document below explaining both Chapter 11 & 7 bankruptcy. So, for those who want to know everything or are directly concerned as creditors, read below (lawyers’ comments welcome).  

Chapter 7 bankruptcy is sometimes also called liquidation bankruptcy. Firms experiencing this form of bankruptcy are past the stage of reorganization and must sell off any un-exempt assets to pay creditors. In chapter 7, the creditors collect their debts according to how they loaned out the money to the firm (also referred to as the “absolute priority”). A trustee is appointed, who ensures that any assets that are secured are sold and that the proceeds are paid to the specific creditors.

For example, secured debt would be loans issued by banks or institutions based upon the value of a specific asset. Whatever assets and residual cash remain after all secured creditors are paid are pooled together to be paid to any outstanding creditors with unsecured loans: e.g. bondholders and preferred shareholders.

Chapter 11 bankruptcy can also be called rehabilitation bankruptcy. It’s much more involved than chapter 7 as it allows the firm the opportunity to reorganize its debt and to try to re-emerge as a healthy organization. What this means is that the firm will contact its creditors in an attempt to change the terms on loans such as the interest rate and dollar value of payments. Like its cousin, chapter 11 requires that a trustee be appointed; however, rather than selling off all assets to pay back creditors, the trustee supervises the assets of the debtor and allows business to continue. It’s important to note that debt is not absolved in chapter 11: the restructuring only changes the terms of the debt, and the firm must continue to pay it back through future earnings.

If a company is successful in chapter 11, it will typically be expected to continue operating in an efficient manner with its newly structured debt. If it is not successful, then it will file for chapter 7 and liquidate. In both instances, common shareholders will most likely see little (if any) return on their investments.

18 Responses to “Ridley Motorcycle Company Bankruptcy (Suite)”

  1. 1 B. Jan 7th, 2010 at 6:31 pm

    Big surprise………………….NOT

  2. 2 FHP Scott Jan 8th, 2010 at 9:30 am

    What a shame another company going out of business…more people loosing their jobs…sucks

  3. 3 Bigalyts Jan 8th, 2010 at 12:35 pm

    Another Company Leaves all their Dealers in a very Bad situation. There are Dealers who have many Ridley’s (Riddlers) left. They are worth about 5 grand each now, as new Inventory. I would say that these Bikes had a market in the World of Chicks who are part Midget & part Jockey ! The name Riddler was given to them when I saw a Riddley. I thought that it was Built as a Joke. Feel bad for all the Ownwers that want to sell and by a REAL Motorcyle (one that shifts). That should satisfy all the Owners that say that their later styled, Riddlers are Full Sized Motorcycles. I feel bad for any Employee that lost His or Her job not out of choice.

  4. 4 Karma's a bitch Jan 8th, 2010 at 12:37 pm

    Big and FHP…
    The employees have been gone for a year or more. There was Clay, Jay and Valerie there for the last year and that was it. At least somebody involved with Ridley was fortunate enough to come out ahead.

  5. 5 B. Jan 8th, 2010 at 6:51 pm

    Oh don’t worry, as sneaky as Clay is, and as much of a Liar Jay is.. they have their money stashed away.. One thing those two have always been.. SNEAKY LIARS

  6. 6 just my opinion Jan 9th, 2010 at 4:24 pm

    B. You sound like a pissed off X employee or is it that one of those guys hosed your girl?

  7. 7 Ridley rider Jan 9th, 2010 at 8:33 pm

    wow, not only did they possibly screw everyone but the dudes girlfriend too.. shame on Ridley

  8. 8 Karma's a bitch Jan 11th, 2010 at 11:37 am

    Nice job cleaning up the smears Cyril. It’s a blog for a reason. If Ridley doesn’t want the backlash, they shouldn’t run it through the forums.

  9. 9 drew Jan 11th, 2010 at 12:46 pm

    Did they really think people would buy those things,really.They are beyond gay

  10. 10 1550tc Jan 12th, 2010 at 12:29 am

    Yeah 15k for a bike that is now worth less than a 1956 honda cub or a 1972, 2 sp CT70………bikes were a joke

  11. 11 sunsound Jan 16th, 2010 at 3:29 am

    Just wanted everyone to know that ‘I” am a Ridley owner/rider. Now…after you stop laughing and pick yourself up off the floor…I also want to let you know that I’m also one of those ‘Pussys’ that served in ‘Nam and returned with my left side about 70% paralyzed from taking a gook’s mortar round.
    If it wasn’t for getting a Ridley, I’d never be able to ride because I am unable to shift.
    Yeah..it’s sad that a bunch of people lost their jobs at the company, but I blame it on politics. There’s a LOT of companies going out of business because congress is not letting them make loans after bailing them out.

    My guess is that 99% of you that posted here are Harley owner/riders…and I have nothing against Harleys. I’d still have one if I wasn’t fucked up.
    BUT…even tho I’m 63 and fucked up……I bet I can still whip ANY of youz asses!!
    Stop Judging!!

  12. 12 davey Jan 23rd, 2010 at 10:04 am

    Sad to see another company go but I have dealt with them and they do lie. I guess people will do anything under pressure.

  13. 13 Mark Jan 23rd, 2010 at 10:32 am

    Davey- what did they lie about?

  14. 14 Ridley Factory Technician Feb 9th, 2010 at 2:59 pm

    Ridley Motorcycle Company for sale at public auction February 16th, 10:00 AM at 35 NW 42nd St, Oklahoma City, OK 73118 FIRST ITEM TO BE SOLD: All Parts inventory, business name and rights…

    For more details see: http://www.duckwallauctions.com (918) 836-3611

    Terms: Cash, CK with bank letter of guarantee, credit card.

    I’ll be there! ok_net@hotmail.com

  15. 15 Ridley Factory Technician Feb 16th, 2010 at 2:51 pm

    By Order of the Court: Ridley Motorcycle indeed did SELL, this 16th day of February, 2010. The first item sold was: ALL PARTS INVENTORY (over 1 million dollars new cost), BUSINESS NAME AND RIGHTS, AS PER UCC FILING.

    What did it go for? $36,000

    I was told, by an auction employee, that a distributor in Missouri bought it.

    The average price for the various (non Harley) Ridley motorcycles sold for between $2500 to $4000 with the newer bicycle type versions selling for less than half that.

    The three Harley-Ridleys averaged about $9000.

    The rest of the stuff, office equipment, tools, supplies etc. looked, to me, to go for ordinary auction bids.

    ok_net@hotmail.com if you contact me put Ridley in the subject line.

  16. 16 chick_biker May 11th, 2010 at 10:10 am

    Sunsound, at least your are riding and damn good for you!! I own a Harley but my partner (by the way Drew, I’m one of those GAY things your referred too, and I, along with Sunsound would kick your ass all over the place if I ever met you!) owns a Ridley. I don;t care if it’s only worth 5.00, it has been a great bike for her, and if any of you pricks even had a girlfriend, you would want them safe if they could not use their left hand for that manly clutch! Like I said, I own a Harley, but for all of you that own and Ridley and LOVE IT……….RIDE ON!!!

  17. 17 Onearmbandit May 31st, 2010 at 8:48 pm

    I guess that I am one of the puzziees that everyone here references. I’m also disabled having only part of my left arm and NO hand to utilize a clutch. I happen to love my Ridley chopper as it gives me the freedom of riding a bike where I wouldn’t otherwise be able to do so. That said, unless one of the big mouth A-Holes posting about how Ridleys are a waste of money wants to invest some time in fabricating a method for me to ride a Harley… Yeah, that’s what I thought. Either put your money where your mouth is or spend time botching about something that actually affects you, like the literacy rate.

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