Erik Buell Racing (EBR) abruptly ceased operations last April. At that time Hero MotoCorp, through its US-based wholly owned subsidiary HMCL (NA) Inc, owned 49.2% of EBR, shares that the company acquired in 2013. As I announced last week, India based MotoCorp Hero proposed a settlement to acquire all the tangible and intangible assets of EBR, free and clear of all encumbrances. Hero MotoCorp being a public company, a stock market disclosure reveals that the transaction is for a total of 2.8 million.
At the time of the bankruptcy, EBR had an estimated $20.8 million in assets and $20.4 million in liabilities including $202,000 owed to employees. The settlement is contingent upon the approval of Hero’s board of directors and upon an agreement on August 6th of the Walworth County Circuit Court. The acquisition would permit Hero MotoCorp to continue with projects for which EBR was providing services. Although not officially confirmed, it is probable that on all these projects Erik Buell would be back in a major role as the lead EBR consultant for Hero