Eric Buell Racing, which shut down operations back in April earlier this year, is set to go under the hammer on July 21, 2015. The company on its Facebook page revealed that the event will take place “between a number of potential buyers at an event managed by the receiver.” The receiver in this case is EBR so that it can clear off its existing debts of 20 million dollars. The bids are subject to court approval which will be made public on July 23, 2015.
However there lies a problem. The company is being sold in large lots to pay off the existing debt. This might mean different buyers can end up with different parts by bidding a higher amount. To explain further, suppose one bidder outbids the rest for intellectual property rights, the other might end up with tangible assets like inventory or stockpile of existing parts. An event like this will make it near impossible for the revival of the EBR brand.
“The assets have to be broken into segments like this by law, but it is a going concern auction and a number of bidders are coming with the intention to buy all the lots necessary to move the company forward again. The outcome is of course unknown, but it actually looks very good to us.”
Hero MotoCorp has been mainly silent on the issue but on one occasion the company did say that they have not ruled out a complete buyout. So can Hero pull this off? Back in 2013 when Hero wanted more stake in EBR, Eric Buell had clearly stated that he does not want to lose hold of the company. Has he changed his mind now finally taking into consideration the present scenario?
A few days and we may have our answer…
Wource: http://bikeadvice.in/eric-buell-racing-hammer-july-21-beginning/
0 comments:
Post a Comment