In August, Bruce Belfer of New Jersey agreed to pay US$ 2.25 million for the manufacturing assets of Buell, while Indian company Hero MotoCorp, with whom Erik Buell had been working, paid US$ 2.8 million for the firm's consulting business. However, now everyone is going back to court for a second auction of the manufacturing assets after. Bruce Belfer says, problems with the first settlement kept him from securing financing to capitalize the business and close the deal.
The difficulty was, he says, that 'our right to close ended September 30. Hero's right to claim against inventory ended October 6th. No financing could be secured with an uncertain balance sheet.' Bruce Belfer is still keen to acquire Erik Buell Racing but that will depend on whether he is the successful bidder at the auction (and, of course, can come up with the money this time). It's unsure as to whether whoever wins the main man himself. Erik Buell has stated; 'If it's headed in a direction I like, which probably likely, then I would stay on. There's definitely interest in the motorcycles. People still want them, but there is a lot of nervousness because they don't know whether the company is going to be there.'
However, the lapse of time may also mean that there are now other parties out there interested in acquiring EBR. Perhaps unsurprisingly, the name of Polaris Indutries, owner of both Victory and Indian motorcycles, has been raised. Erik Buell is positive that the company will be restarted although we have to wait and see under whose ownership that will be and whether the confidence of EBR dealers, many of whom were shocked by the suddenly closure of the company, can be regained. It appears this story is far from over.Tag: EBRErik Buell RacingBruce BelferHero MotoCorpAuctionBusiness