Tell me this is late April Fools

[Scott]

http://www.roadracingworld.com/news/...uble-in-india/
I thought the above article was very interesting. Seems to make lots of sense.

Wow! My assumption was that EBR was burning through cash and Hero simply said they weren't going to give them more. But if Hero actually OWED EBR cash and weren't paying, that's pretty dirty.

It seems like the dam may be on the verge of breaking soon and maybe we'll start to find out what happened.

If this is close to being true, I can imagine this backfiring big-time on Hero. Their stock is in freefall, if they turn out looking like dirty players, their future selling bikes in the US (and Europe and Australia etc.) could be very rough. AND if their plan really was to get EBR on the cheap, now that it's going to be offered on the open market (possibly because of a shrewd move by Erik), they might have competition, and they might not even get EBR in the end.

The next few weeks may be interesting.

[Hughlysses]

Yea, if this is true I'd think EBR has legal recourse to sue the hell out of Hero too, maybe to the tune of a lot more money than that.

[Scott]

Yea, if this is true I'd think EBR has legal recourse to sue the hell out of Hero too, maybe to the tune of a lot more money than that.

Yeah, but that could take years to sort out in court and every day the plant is closed means talent being lost and dealers and suppliers wanting to distance themselves from the mess.

Hopefully someone with deep pockets (other than Hero) can get something pushed through the receiver and courts and start putting the pieces back together before things are too far gone.

[Hughlysses]

I think the ideal situation would be if Hero showed up, say August 1st at court with a cashier's check for $20M as their offer for EBR, and the judge said "Thank you. I'll take that as payment for the $20M you owe EBR. This receivership is hereby rescinded."

[Scott]

I think the ideal situation would be if Hero showed up, say August 1st at court with a cashier's check for $20M as their offer for EBR, and the judge said "Thank you. I'll take that as payment for the $20M you owe EBR. This receivership is hereby rescinded."

You may actually be on to something there. Suing Hero would take forever and it would be very tough to prove intent. But if Erik can show Hero wasn't paying the bills and that was the real problem, a judge may have some ability to limit their standing in any bidding process. If I were the judge, I think I'd say something like: "If you can't be trusted to pay your obligations, how can I have any faith you'll pay off your debts once you own the company outright?"

[budgolf]

If this is any indication of how they conduct business. ..I doubt that their bikes would sell. Sure they'd sell a few....but people that treat their business partners this way treat their customers in worse ways. Too many names with awesome affordable. bikes and good customer service for a company that acts like this to sell anything in large numbers.

[Bagger]

Perhaps it does not help a lot, but like EBR Europe is not under art.128, they are dooing good. Registered as an own comp, and is not in that way under EBR USA. Not that they now can sell anything, but stand loss from the hc in USA.

[RV7PILOT]

Any owner's interested in what I have been told by a local wisconsin bankruptcy attorney in regards to preserving our interests and claims, feel free to shoot me a PM.

PM sent.

[oddball]

I'm guessing any claims wouldn't apply to sales since the 15th?

[Scott]

Perhaps it does not help a lot, but like EBR Europe is not under art.128, they are dooing good. Registered as an own comp, and is not in that way under EBR USA. Not that they now can sell anything, but stand loss from the hc in USA.

Interesting. There are probably a few different entities and those details could be meaningful before this is all done.