After running into deep financial troubles earlier this year, Hero Motocorp’s former technology partner and American superbike manufacturer Erik Buell Racing (EBR) went into court receivership (something similar to declaring bankruptcy), pending an auction to sell its tangible and intangible assets.
Meanwhile, Hero Motocorp announced that it has purchased all of EBR’s assets that pertain to its remaining technology consultation deal for a sum of USD 2.8 million. The remaining assets went down the hammer on August 5, 2015, and were sold to Atlantic Metals LLC whose bid of USD 2.25 million was the highest.
However, the latest news report by Milwaukee Journal-Sentinel says that the deal fell through due to complications. Bruce Belfer, the promoter of the Atlantic Metals deal, failed to secure the funding to purchase the assets. He blames Hero Motocorp for the debacle.
Hero Motocorp has purchased EBR’s assets that are related to its technology consultation deal thereby removing a significant portion of the American brand’s R&D resources off the auction table.
Speaking to the publication, he said:
They (Hero Motocorp) went in before we closed and started to remove things, to the point where an entire warehouse was moved. I’ve done some tough deals in my career. But this was, in my opinion, intentionally complicated..
It’s understood that the assets based on which Belfer secured the loan turned out to be owned or taken by Hero Motocorp. Having no sufficient collateral security anymore, Belfer’s creditor banks pulled out at the last minute.
As a result, EBR will be up for auction once again on December 10, 2015. Despite the complication, Belfer has stated that he will bid for the company once again. The botched deal obviously affects the former EBR employees and dealers.
Hero HX250R – Photos
Via – JSonline.com