Photo: Erik Buell Racing
Erik Buell Racing has a new owner that bought the entire manufacturing assets, but the creditors will not be exactly happy, as they will receive but a fraction of what they are being owned.
Atlantic Metals Group LLC bought everything "in bulk", including machinery, tooling, motorcycle inventory, parts inventory, accounts receivable, and intangible assets, such as databases, trademarks, patents, and all.
No less than 37 potential buyers signed confidentiality agreements for receiving info on the auction, of which 13 even paid visits to inspect the EBR assets in East Troy, the Journal Sentinel reports. However, only two registered bidders attended the 5th August, showing the rather low interest in the acquisition of EBR.
As no bids were made at the auction, the stalking horse bid was accepted, and the receiver went forth to seek court approval for the sale. The court offered no further information about the buyer, but stated that "neither the Buyer nor its principals of the Buyer are or ever have been shareholders, officers, directors or members of EBR. The shareholders of Erik Buell Racing, Inc., Mr. Erik Buell and Hero MotoCorp, are not shareholders or affiliated with the Buyer.”
Together with the prior sale of R&D-related assets to Hero Motocorp, the auctions for EBR managed to raise $5.05 mil (€4.62 mil), a long shot from the $20.4 mil (€18.68 mil) owed by EBR to creditors. And as the former EBR employees are first in line to receive money being owed in amount of $202,000 (€185,000), things are even more iffy for the rest of those looking to make whole.
Other creditors include the Japanese engine design firm Mito tech Co., being owed $733,000 (€671,000) and Porsche Engineering Group, looking to get back their $390,000 (€357,000). No mention was made as to the rest of the debt.
We are eagerly waiting for more info from Atlantic Metals and/or EBR, shedding some light on the future of the company. Now it's still anyone's guess...
No less than 37 potential buyers signed confidentiality agreements for receiving info on the auction, of which 13 even paid visits to inspect the EBR assets in East Troy, the Journal Sentinel reports. However, only two registered bidders attended the 5th August, showing the rather low interest in the acquisition of EBR.
$2.25 million for a company with $20.4M in liabilities
Atlantic Metals has even made a stalking horse bid in agreement with Michael Polsky, the Milwaukee attorney appointed by the court as the receiver. Prior to the auction, Atlantic Metals and the receiver reached an agreement for a $2.25 mil (€2.06 mil) early bid, with other bidders having to fork out at least $2.4 mil (€2.2 mil) if they wanted to get hold of EBR.As no bids were made at the auction, the stalking horse bid was accepted, and the receiver went forth to seek court approval for the sale. The court offered no further information about the buyer, but stated that "neither the Buyer nor its principals of the Buyer are or ever have been shareholders, officers, directors or members of EBR. The shareholders of Erik Buell Racing, Inc., Mr. Erik Buell and Hero MotoCorp, are not shareholders or affiliated with the Buyer.”
Together with the prior sale of R&D-related assets to Hero Motocorp, the auctions for EBR managed to raise $5.05 mil (€4.62 mil), a long shot from the $20.4 mil (€18.68 mil) owed by EBR to creditors. And as the former EBR employees are first in line to receive money being owed in amount of $202,000 (€185,000), things are even more iffy for the rest of those looking to make whole.
Other creditors include the Japanese engine design firm Mito tech Co., being owed $733,000 (€671,000) and Porsche Engineering Group, looking to get back their $390,000 (€357,000). No mention was made as to the rest of the debt.
We are eagerly waiting for more info from Atlantic Metals and/or EBR, shedding some light on the future of the company. Now it's still anyone's guess...
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