Hero Motorcorp to rescue EBR with a 100% acquisition? (Update)
Today, Hero MotoCorp has shared the press release which confirms that Hero is interested in buying EBR stake. Though Hero will not buy 100% stake, they will be buying EBR’s consulting business for $2.8 million. Read the official release below:
Original Story – 27th July 2015
Erik Buell Racing (EBR) ceased operations in April this year after running into financial difficulties. The American superbike company which is a technical partner and partly owned subsidiary (49.2% stake) of Hero Motocorp went into court receivership (similar to bankruptcy) in Wisconsin, seeking protection against creditors.
The court of Wisconsin is now ready to auction the company’s assets to a suitable buyer (or buyers) who can pay off the debts and work towards reviving operations. The auction was scheduled to take place on July 21st but according to EBR’s official Facebook page, there has been a slight delay due to some legal diligence details.
While the auction is set to happen anytime soon, a rumor which seems to have originated on a Thailand website suggests that Hero Motocorp has bought EBR’s lock, stock and barrels, thus making it its wholly owned subsidiary. The reports go on to say that Erik Buell himself has been offered a full time job by Hero Motocorp.
If the report is true, then EBR is expected to resume operations from its Wisconsin HQ and its 126 employees could regain their jobs. A similar result can be expected for the brand’s American dealers. It’s to be noted that, there are still quite a few motorcycle kits at the plant which can be put together and dispatched within days once the new buyer comes on board.