The remaining assets of Erik Buell Racing (EBR) are going back up for auction in December, after Atlantic Metals Group, LLC, the winning bidder, failed to close the deal by the mandated deadline, according to an article in Milwaukee’s Journal Sentinel.
EBR sought court protection from creditors, entered Receivership and shut down its motorcycle manufacturing and engineering operations in April of 2015. The Receiver then set up an auction to sell off the assets of EBR.
On August 5, Atlantic Metals Group, LLC, a New Jersey-based business owned by motorcycle enthusiast Bruce Belfer, was declared the winner of the auction with a bid of $2.25 million. That bid was to buy the motorcycle inventory, parts inventory, tooling, machinery and other manufacturing assets of EBR.
In an interview with Roadracing World on August 26, Belfer said he planned to re-open EBR and resume production of EBR motorcycles with Erik Buell having a significant role in the company.
Prior to the auction, the Receiver entered into a Settlement Agreement with Hero MotoCorp, a 49% minority owner in EBR, in which Hero MotoCorp purchased for $2.8 million the engineering work it contracted EBR to do on small-displacement Hero motorcycles.
“The Receiver has been advised that the Buyer is ready, willing and able to close on the purchase of the Assets with no contingencies whatsoever, other than approval of the proposed sale by this Court and obtaining free and clear title to the Assets,” read court documents released on August 6.
Atlantic Metals Group, however, was apparently unable to obtaining “free and clear title to the Assets” preventing it from securing the financing it needed to capitalize the business and close the sale, according to the Journal Sentinel article.
Belfer said his deadline to close the deal was September 30, 2015, but Hero had a right to claim against the inventory until October 6, 2015, resulting in an uncertain balance sheet that prevented him from securing financing.
The article states that Belfer still wants to acquire EBR and restart the company, but to do that he will need to win the new auction on December 10, 2015.
Read the entire Journal Sentinel article here: http://www.jsonline.com/business/erik-buell-racing…