And you thought that the American Chopper human and legal saga ended with the TV show.. Hey no. The merchandising division of Orange County Choppers (called Hudson Valley Merchandising) filed for Chapter 7 bankruptcy in Poughkeepsie last Thursday January 31st. The parent company, Orange County Choppers Holdings, doesn’t belong to the bankruptcy filing.
In 2010, I reported that GE Commercial Finance, the lender of the famous OCC glass and steel building started the foreclosure process after the company missed several payments. At the time, I explained that it was a chicken play between GE and OCC, Paul Teutul Senior trying to oblige his lender to renegotiate more favorable terms for the 2 loans he obtained for a total of $12 million. Reason? Today, the OCC building market value would be $8 million or less. In 2011 GE took the deed to the building.
The company’s bankruptcy proceedings list 1.1 million in assets and $1.4 million in liabilities. The assets consist primarily of accounts receivable. The liabilities consist primarily of judgments. The company stated in that it had no gross income during 2011-2013.
The sole member of the company is Orange County Choppers Holdings, Inc. of Newburgh, New York. Paul Teutul, Sr. owns more than 10% of the company’s equity.
A chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. In the case of OCC the Chapter 7 Trustee will probably liquidate the accounts receivable and distribute the funds to the judgment holders in accordance with the bankruptcy priority scheme.
As far as I know, Paul Senior owns part of the land next to the massive building. If he wants to continue his bike building activity he will probably move there.