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The Milwaukee Journal Sentinel reported today that Erik Buell Racing’s assets have been sold at auction for $2.25 million, including machinery, tooling, motorcycle inventory, parts inventory, accounts receivable and intangible assets. Those intangibles include trademarks, motorcycles, parts, tooling, development equipment, patent applications and work completed on future EBR products.
Reached via text this afternoon, Erik Buell said he is working with the new owner on “how to roll out the story.” Pressed for details, Buell said, “He’ll tell his story his way and in his time schedule. As it should be.”
He’s a bike guy, though?
“Yes,” texts Buell.
EBR was in Wisconsin’s unique Chapter 128 Receivership, not in any sort of bankruptcy program, which means there appears to be little in the way of EBR quickly resuming operations, assuming the new buyer is fairly well-capitalized.
The buyer is a company known as Atlantic Metals Group LLC. Not much is known about the company; in fact there are several separate companies doing business under a similar name. What we do know is that Atlantic Metals Group was represented in the court proceedings by a Bruce Belfer.
A man going by that name posted on an EBR 1190 Owners Group’s Facebook page confirming the news and writing: “Yes. EBR lives. It reopens. It goes on. Thank you all for keeping the faith. More good news to follow…”
|UPDATE: Belfer posted a new message to the EBR 1190 Owner’s Group page to explain more about Atlantic Metals Group and the company’s plans for EBR. Along with a photo of himself in a factory, Belfer writes:
“To address any confusion, Atlantic Metals division of BGI is a manufacturer of fabricated metal equipment in the architectural, electrical and lighting businesses. We are not in the scrap metal business. We make things. We make them here in Jersey, in the USA, with American engineers, American ingenuity, and American skilled labor. Been at it for over 30 years. We know how. EBR is intact and in good hands. Thanks for keeping the faith! More to come. Time to get to work…”
The Journal Sentinel reports that court records showed EBR had $20.8 million in assets and $20.4 million in liabilities. Former employees were owed $202,000 in paid time off, and they would be at the head of the line when it comes to getting paid. Other large debts included $733,000 to Mito Tech Co., a Japanese engine design firm, and $390,000 to Porsche Engineering Group.
We’re not businessmen at MO, but it seems like buying $20.8 million worth of motorcycles and motorcycle-producing stuff for $2.25 million is a pretty good deal. We expect a big announcement soon. It looks like Erik Buell may rise from the ashes once again.
On July 28, Hero MotoCorp entered into an agreement with Erik Buell Racing to acquire consulting assets for $2.8 million, which included the Indian company receiving parts, prototypes, and developmental data for the projects EBR had previously conducted.
There’s an excellent article by Rick Barrett of the Sentinel Journal about the demise of EBR here. We expect to learn more when an official announcement is released.