Photo: EBR
The third auction meant to sell the remaining assets of Erik Buell Racing was approved by Walworth County Circuit Judge Phillip Koss. The new owner of EBR is no stranger to the Buell badge. Liquid Asset Partners is the very company that dealt with the liquidation of Buell Motorcycles when Harley-Davidson pulled from the deal back in the day.
Liquid Asset Partners also won the previous auction, the one that was contested by Bruce Belfer and potential-bidder US Heritage Powersport, the winner of the first bid. However, Belfer failed to comply with the financial side of the deal despite being given two deadlines to come with the money.
Judge Koss ruled in favor of Liquid Asset Partners despite the fact that Belfer had come up with a similar offer. However, because of the previous experience with Bruce Belfer, the liquidator of EBR did not recommend him to the court.
A final sale is a godsend for EBR's creditors and employees, as the price was expected to become smaller with each new bid. Even so, the current bid represents less than 10% of what the auction would have needed to make everybody happy.
We remind you that EBR had $20.4 million (€18.69 m) in liabilities at the time when it entered receivership. A&R reports that the bid will be divided between the former EBR employees, who will receive $202,000 (€185,100), while Mito Tech Co. of Japan will get $733,000 (€671,600) and Porsche Engineering Group $390,000 (€357,300).
Bill Melvin Jr., the owner of Liquid Asset Partners, says that his company will not enter the motorcycle industry. “We will not be manufacturing motorcycles, as Liquid Asset, but we will be working to put together a plan with a team that can be successful in doing that.”
This can only mean that Liquid Asset Partners is looking to attract investors for EBR to make it float again, or to sell it to someone else who would make better use of the iconic American manufacturer. As to how Erik Buell Racing will be "welcomed at the table" in the industry once more, only time can tell.
Judge Koss ruled in favor of Liquid Asset Partners despite the fact that Belfer had come up with a similar offer. However, because of the previous experience with Bruce Belfer, the liquidator of EBR did not recommend him to the court.
EBR initially auctioned for $1.6 mil, bid then raised to $2.05 mil
Liquid Asset Partners initially made a $1.6 million (€1,46 m) offer, but was forced to increase the bid to $2.05 million (€1.87 m). As predicted, the final bid for EBR turned out to be smaller than what Bruce Belfer agreed to pay in the first place. Earlier, Belfer had won the EBR auction with a $2.25 million (€2.06 m) bid, but was unable to secure the funds.A final sale is a godsend for EBR's creditors and employees, as the price was expected to become smaller with each new bid. Even so, the current bid represents less than 10% of what the auction would have needed to make everybody happy.
We remind you that EBR had $20.4 million (€18.69 m) in liabilities at the time when it entered receivership. A&R reports that the bid will be divided between the former EBR employees, who will receive $202,000 (€185,100), while Mito Tech Co. of Japan will get $733,000 (€671,600) and Porsche Engineering Group $390,000 (€357,300).
The future is yet uncertain for EBR
Even though a final sale increases the chances for EBR to return to making and selling motorcycles, the future is anything but clear at the moment.Bill Melvin Jr., the owner of Liquid Asset Partners, says that his company will not enter the motorcycle industry. “We will not be manufacturing motorcycles, as Liquid Asset, but we will be working to put together a plan with a team that can be successful in doing that.”
This can only mean that Liquid Asset Partners is looking to attract investors for EBR to make it float again, or to sell it to someone else who would make better use of the iconic American manufacturer. As to how Erik Buell Racing will be "welcomed at the table" in the industry once more, only time can tell.
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