The latest auction for the manufacturing assets of Erik Buell Racing (EBR) has been set for January 13, 2016. This is the third auction for this aspect for EBR since it went into receivership in April of 2015.
At stake are the East Troy manufacturing assets, including machinery left over in the factory, tooling, motorcycle inventory, accounts receivable and intangible assets. Hero MotoCorp has already purchased EBR’s consulting business assets for $2.8 million.
The first auction saw Atlantic Metals Group LLC, spearheaded by CEO Bruce Belfer, place the winning $2.25 million bid for EBR. Belfer however didn’t make the deadline to finalize the purchase, so EBR’s manufacturing assets were again up for grabs. A second auction was scheduled for December 14, 2015, but a $1.6 million offer from Liquid Asset Partners LLC came in before the auction took place and no other bids were placed. Liquid Asset Partners LLC conducted the sale of many of Buell Motorcycle Co.’s “hard assets” back in 2010.
Erik Buell in happier times. A third auction for the manufacturing assets of Erik Buell Racing has been set for January 13.
But Walworth County Circuit Court Judge Phillip Koss delayed a decision over “concern that opponents of the deal didn’t have time to submit objections.” Among the reported objectors of the sale to Liquid Assets was Belfer and US Heritage Powersports, owned by Demetri Melekos. A new hearing was scheduled for January 14.
The new auction date of January 13 was set after attorney Christopher Murray of Beck, Chaet, Bamberger & Polsky S.C. submitted a letter to Judge Koss stating there were parties interested in making a bid for the remaining assets higher than the $1.6 from Liquid Asset Partners LLC and that allowing them to submit their bids is in the best interest of creditors and the estate.
Will Erik Buell Racing be able to pick itself off the mat and answer the bell one more time or are its assets headed toward final liquidation? Hopefully this question will be answered January 13.