| Author | Message | ||
     Slaughter |
Jaime!? You mean His Noodliness is NOT taking control of EBR?? BLASPHEMER! | ||
| Jaimec |
 | ||
| Hughlysses |
Interesting news from multiple Indian sources this morning. They're claiming Hero has reached a settlement with the receiver to buy certain EBR assets (this source states it's EBR's consulting business), which I'm assuming would include all the stuff EBR was working on for Hero: http://www.livemint.com/Companies/FDJSsEeianzBuH4z vLCrMM/Hero-to-acquire-EBRs-consulting-business.ht ml | ||
| Hughlysses |
Here's a press release from Hero which appears to substantiate the above news articles: http://www.moneycontrol.com/stocks/reports/hero-mo tocorp-clarificationrespect-topress-release-concer ningexecutiona-settlement-agreement-by-hmcl-na-inc hmcl-americas-inc-1282281.html | ||
| Hughlysses |
Interesting information in this article: http://www.autocarpro.in/news-national/hero-motoco rp-acquire-ebr-usd28-million-8949
| ||
| Slaughter |
Sigh... Will have to wait for the court-appointed receiver to rule on this. Most curious to hear from the principals - Erik and others. I can't help but wonder what is happening behind the scenes. | ||
| Hughlysses |
Steve- I think this is a good thing. I take this to mean Hero pays $2.8M in exchange for the design work EBR did for them AND Hero relinquishes their 49% ownership of EBR, making the sale of the rest of EBR cleaner and simpler. | ||
| Tpoppa |
developments on the front of five crucial projects (all showcased at the 2014 Delhi Auto Expo) remained incomplete at the time when EBR had declared its insolvency. I strongly suspect that this is the reason that Hero didn't pay the consulting fees. Whether or not the payment is legally tied to those deliverables would only be known by those with access to the contract. | ||
| Davegess |
I strongly suspect that this is the reason that Hero didn't pay the consulting fees This is not true. I am not going to say more until AFTER the deal is, to quote Stevie Wonder, "signed, sealed delivered". After the dust clear more details will be made public. | ||
| Court |
It wold behoove many to understand the role of a RECEIVER . . . be mindful no one hired an AUCTIONEER. . .they hired a RECEIVER. To quote a sage fellow . . . I am not going to say more until AFTER the deal is, to quote Stevie Wonder, "signed, sealed delivered". After the dust clear more details will be made public. I'd wager news is imminent. | ||
| Hughlysses |
Interesting comments, Court. I know I'm getting an education following this process. It stands to reason nobody else would be very interested in buying the designs for Hero's stuff besides Hero. If nobody else expressed any interest, it makes sense the Receiver could go ahead and make a deal instead of waiting on the auction. Which raises the possibility that if there's only one interested buyer for the remainder of EBR, the Receiver could make a deal with them as well, without waiting for the auction. Hmm.... | ||
| Hughlysses |
Here's a reliable US media source confirmation of this transaction: http://www.jsonline.com/business/buell-auction-res cheduled-for-aug-5-b99545931z1-318861161.html | ||
| Court |
There is no "waiting for an auction". This is not bankruptcy. The Receiver has a duty, i fact a fiduciary duty, to maximize the revenue to the benefit of the creditors. They can trade, sell, wheel and deal as they see fit. I suspect they have found the one entity in the world to whom most the stuff in that building actually had value . . negotiated and cut a deal. That's good for you, me, Erik, the creditors and global peace. It also, in my mind, makes the rest of the assets more valuable, more marketable and easier to kick start. Who wants to be: 1) Chased about by one of the world's largest manufacturers. 2) Chase about a firm with >1,000 lawyers. If I were guessing . . . . I'll bet Erik has already got some "conditional' employment contracts in place with last least 2 concerns. "you buy it, I agree to do . . . I suspect other Elves do as well. One of the salient features is that you have a company that absent one key person, likely a couple key persons, sees it's value equal to about that of a used Dairy Queen paper cup. Think of it as motorcycle chess. . . . not only does WHERE you move matter . . . but so does the sequence of moves. Erik Buell is no where near done and I want him, and some others, building my next motorcycle. Just a wild ass guess on my part . . . . | ||
| 86129squids |
Court- your posts, over the years I've been on BW, have proven to be consistently some of the MOST entertaining to read. Thanks, friend. It'll be very interesting to see how things shake out. I've no doubt Erik will be just fine, and back at it with redoubled efforts soon. | ||
| Hughlysses |
A&R version of the story: http://www.asphaltandrubber.com/news/hero-motocorp -acquires-unfinished-rd-erik-buell-racing/?utm_cam paign=news&utm_medium=twitter&utm_source=twitter Somehow they read the Hero press release and seem to come away thinking EBR owed Hero money. | ||
| Cmmagnussen |
Doesn't take much to get a degree in journalism does it? | ||
| Steveford |
If I'm reading these articles correctly, Hero got their R&D work done for $27.8 million (initial investment plus settlement money to go away with some additional R&D work). See ya, wouldn't want to be ya. Hero also spent a pile on WSB and because not all of the Hero R&D projects were completed on time they didn't cough up an additional $20 million. This put the squeeze on so to avoid a hostile take-over from the much more powerful minority partner EBR elected to declare bankruptcy. Is this accurate? | ||
| Court |
HERO has also insured… In perpetuity… That their name is always the equivalent of crap product and crap practices. It'll take a lot of marketing… Following that… The penetrate the USA market. | ||
| Hughlysses |
...because not all of the Hero R&D projects were completed on time they didn't cough up an additional $20 million. According to Dave Gess, who should know, since he worked for EBR, there is no validity to the claim that Hero withheld payment because projects were not completed on time. See his post above. I guess we'll find out the whole story (or more of it anyway) sometime after August 6. | ||
| Lake_bueller |
So follow with me here.. "Court records show that Erik Buell Racing has $20.8 million in assets and $20.4 million in liabilities." Hero pay EBR $2.8M for "certain tangible and intangible assets". That now leaves in a positive cash flow situation. So they could possibly drop the bankruptcy or restructure under a different bankruptcy code to allow them to reopen. | ||
| Steveford |
I can't wait to see how this turns out (but I guess I'll have to). I may not know much but I DO KNOW that I'll never own a Villain. A Royal Enfield, maybe... | ||
| Greg_e |
I think Mr. Buell's next company should be called Villain Motorcycles! | ||
| Tpoppa |
That now leaves in a positive cash flow situation. Hero owns all or part of the consulting assets which was the only part of EBR that was to generate enough revenue to support the business. I don't see how the motorcycle business could stand on it's own even for a short period. Some deep pockets need to be part of the equation. | ||
| Davegess |
This is not a bankruptcy. It is a court supervised reorganization. The whole point is to reopen with a new owner. If the receiver can't make that happen then bankruptcy would follow | ||
| Snacktoast |
This is not a bankruptcy. It is a court supervised reorganization. The whole point is to reopen with a new owner. If the receiver can't make that happen then bankruptcy would follow +1 Regardless of how many online "news" sources you find that are either too ignorant or are too lazy to educate themselves of the situation, Dave is correct. Oh, how I love the interwebs | ||
| Ourdee |
So, consulting is gone. What could an engineering spin-off from EBR name itself so it could generate revenue? Move the pawn all the way across the board and redeem it for a new dairy queen. =] | ||
| Snacktoast |
I don't think consulting is "gone", per se. I think that Hero purchased the partially completed IP that EBR was contracted to do for Hero. At least that is the way I read it anyway. | ||
| Tpoppa |
The ability to consult isn't gone. The customer and the revenue are gone. They could certainly look for new clients but that may not immediately plug the financial holes. Deeper pockets are needed. | ||
| Snacktoast |
Yup, I think we can agree that a few truckloads of cash wouldn't hurt the situation. | ||
| Cyclonedon |
I'm still hoping that Harley buys them! |
