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Erik Buell Racing Auction Contested Without Any Results

Posted 8 years ago by QuikrCars | 576 views

The beleaguered American motorcycle brand, Erik Buell Racing (EBR) has been in the news a lot lately after it filed for bankruptcy in April this year. This led Erik Buell Racing to be placed into receivership under the Wisconsin law. The latest receivership round was contested which ended without any fruitful resolution.

After Erik Buell Racing filed for bankruptcy, the brand was sold in the first receivership auctioning round in August. The East Troy company went up for auction and was bought by a winning bid of $ 2.25 million made by Atlantic Metals LLC. Bruce Befler, the representative of Atlantic Metals LLC hinted at the revival of the Erik Buell Racing brand. But unfortunately, the deal fell through after Bruce Befler was unable to secure the financing for the purchase. Rumours suggested that the purchase of EBR’s unfinished consulting work by Hero MotoCorp ahead of Befler’s deal to buy the company was the reason for the failure.

Hero MotoCorp Ltd (HMCL), as part of a settlement agreement was to acquire certain tangible and intangible assets of the EBR entities being free and clear of all encumbrances for a consideration amount of $ 2.8 million. These entities were nothing but the unfinished consulting work EBR was doing for Hero MotoCorp as a client. With this acquisition HMCL agreed to drop all other claims against EBR. This clearly squashed all rumours that HMCL was responsible for the fall of EBR.

But, Erik Buell Racing was back again into receivership looking to be bought in the second round of auction which was scheduled to take place on December 10th. It was expected that EBR would be sold on the second auction but it seems like the ongoing troubles of the company will continue into the future. The court has again set a new date for the auction on January 14th, 2016 and all formal motions are to be submitted before this date.

This means that Erik Buell Racing will be back to auctioning for the third time and we can only wait and see where it would go from here. Bruce Befler had announced that he would again bid for the company after failing in his first attempt. But there were no reports of Befler participating in the auction this time round. It will be interesting to see who shows up to purchase Erik Buell Racing and for what price. In a twist it would be really interesting to see Hero Motocorp go all out and buy out the American brand.

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