The Erik buell saga continues. After being dropped in 2009 after 10 years spent with Harley-Davidson , Buell Motorcycles founder Erik Buell started his own independent company Erik Buell Racing (EBR)
The new company abruptly shut down in April 2015 with reportedly 20.8 million in assets and 20.4 million in payable bills and other liabilities and entered receivership (the equivalent of bankruptcy) seeking court protection from creditors.
In a settlement agreement prior auction, Hero MotoCorp acquired for $2.8 million the engineering consulting work it had commissioned EBR before the shut down. At auction, Atlantic Metals Group, LLC led by, Bruce Belfer acquired for $2.5 million all Buell’s manufacturing assets with the company required to close the deal before September 30, 2015.
Belter explains that because Hero MotoCorp had the right to claim against the inventory until October 6, 2015 he was unable to secure financing. Consequently, EBR assets are back for auction on December 10 with Belfer still interested and ready to bid again to acquire all Buell manufacturing assets.
I bet the new owner will hire E. Buell again.
Hmmm, if someone owes you $x and has assets of $x, it seems the right thing to do would be to sign over those assets over to you and make it square, right?
I know the bike pictured (an EBR 1190RS) may not be targeted to most in this audience, but think about this: a small factory with 10-14 guys and self funding made it happen. In the US. That is awesome.
No, Woody’s. What about the intangible assets. The brand and what is called the Good Will of this brand.
Self-funded? LMAO The folks who won’t get paid seem to be funding a bunch of it, no?.
Mr. Hamilton, I understand, but does anyone think those intangible assets really worth much anymore, compared to the amount owed? Mr. Buell is a very good engineer, but unless indentured servitude is being auctioned off I don’t see it making much of a difference in the debts owed. Hopefully I’m wrong, but seeing the shell game with Hero, I don’t see much justice here.
Woody;s. Indentured or indebtured? Ha, ha. You are too old to understand Good Will and the value of Buell’s.
Look, it is what it is….
Good will or bad Will, good product or bad product, in the end credits have to balance debts…
The market makes the decisions.
And no business is Too-big or Too-small to fail….
Unless you’ve paid off political hacks to bail you out…… 🙁
-nicker-
P. Hamilton, how old are you? ☺