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EBR closes, files for receivership

“Unfortunately, on April 28th, I had to face the fact that the material of EBR and part of my own personal material disappeared from my Racing Department in Verdello"

Personal material? A tear off, a gym bag, and a bag of weed?
 
:rofl Just three paragraphs from that article are worth the cost of a Wharton MBA... read and understand this and you'll know everything you need to know about doing business in India (or China).



"...the family-run Hero company balking at paying Honda royalties as specified under contract.

Insiders say that Hero has not paid EBR about $20 million owed for engineering and design work EBR did on 13 new Hero models for the Indian market. EBR bore the expense of the engineering and design work, then ran out of operating capital while waiting to be paid for that work, those insiders said.

Speculation is rampant that Hero delayed payment to force EBR into receivership so it could pay less to acquire the part of the company it didn’t already own."

So I learned something today that explains Erik Buell's decision to put EBR into Wisconsin receivership instead of the more normal Chapter 11 ...

Owners of a company that goes into Wisconsin receivership cannot hold any ownership position in the company once it emerges on the other side. Hero has been effectively blocked from buying EBR.

Hero stiffed EBR on $20 million in debts hoping to force them into bankruptcy and get the other 50.1% of the company for pennies... and in return Erik found a way to go scorched earth on their asses and deny them anything.
 
Very disappointing to learn how Hero operated. :(

While the Splitlath EBR DNF'd at the TT, it would have been an encouraging show had EBR not been forced down this path.
 
So I learned something today that explains Erik Buell's decision to put EBR into Wisconsin receivership instead of the more normal Chapter 11 ...

Owners of a company that goes into Wisconsin receivership cannot hold any ownership position in the company once it emerges on the other side. Hero has been effectively blocked from buying EBR.

Hero stiffed EBR on $20 million in debts hoping to force them into bankruptcy and get the other 50.1% of the company for pennies... and in return Erik found a way to go scorched earth on their asses and deny them anything.

:applause
 
That would be awesome. I hope Hero gets screwed big time out of this.

Well, Hero burned Honda so nobody else in Japan will work with them, they burned EBR... and now they've reportedly approached KTM for a technology partnership and been turned down.
 
Yep. Serves 'em right.

I hope Erik can open up a small SBK shop or something like that and put the production motorbike thing by the wayside.
 
I wanted to ride that new sport bike too
 
there's so much to mourn here......

supposedly, we'll all know for sure what's up with the assets on 7/23

in the meantime, the Buell board's re-branding of Hero is "Villain" -
finally, some humor in all this!
 
Maybe Polaris as white knight and scoops up the assets?
 
eh, don't hold yer breath

in that vein, one of my Bonneville pals is/was an EBR dealer -
he just posted this:

"Just got my first communication from EBR today -
doesn't say a whole lot, but they do sound optimistic:

Hello to all EBR dealers.

Our apologies for the last months and all the uncertainty and business hardship that the closure of EBR created.

The receiver and his team have worked diligently for a way forward and we are now confident all is headed in the right direction.

It is likely that EBR will be under official new ownership as of July 23rd
"
 
Concept show bike at the bottom of that article looks like a total KTM rip off.
 
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