January 13th, preceding the previously scheduled hearing on the 14th:
http://www.jsonline.com/business/cou...642 74051.html
(Edit- link fixed)
January 13th, preceding the previously scheduled hearing on the 14th:
http://www.jsonline.com/business/cou...642 74051.html
(Edit- link fixed)
Last edited by Hughlysses; 01-06-2016 at 08:26 AM.
The link provided doesn't work. Another auction is best for all, I hope it works out this time.
Some interesting potential bidders listed there, including S&S Cycles (who I believe has supplied engine parts to EBR) and Zero Motorcycles, where several former key Buell employees work.
I imagine the additional interest in the auction has the potential to make things more difficult for Bruce, but it would also seem to make it less likely that EBR will wind up being liquidated.
Wow. So if I read correctly, there was a bid from GP Holdings for $3.15 that didn't pan out. Bruce and others may have been able to beat the $1.6 of the liquidator but they thought they had to beat $3.15 so even though Bruce may have been willing to pay $2 million, he may not have realized until too late that he could actually get it for that. And remember Bruce's comment right after the auction that the company would stay together? That was probably based on the false belief that GP Holdings had been the high bidder.
So we have a lot more information now, and it seems like interested parties (based on court documents and not just our speculation) include:
Bruce
S & S Cycle http://www.sscycle.com/
Zero http://www.zeromotorcycles.com/
US Heritage Powersports (Demetri) https://www.facebook.com/US-Heritage...3245458052544/
And GP Holdings USA http://www.gpholdingsusa.com/
Those are some intriguing possibilities, but clearly resources or other factors have stood in the way of any of those companies going full-bore through two previous auctions (though with each delay, they gather more information and have more time to secure financing).
It seems like any of those would be preferable to the liquidator, but Bruce is the only one who has expressed a clear intent. It's possible that some of those other companies might be interested in getting cheap equipment that could likely be useful in production of non-EBR motorcycles. But I suspect most of them are interested in it for more than just equipment.
One week from today. Will any members be attending who can give us updates?
I think half that group is looking for tooling and that's all. Only two there I see that I thing actually want to continue operations. We shall soon see. My fingers are crossed.
We also have to keep in mind that some of the companies might have inquired just out of curiosity without ever being serious contenders.
But I think it's a little hard to judge motivation. I would assume GP Holdings is interested in getting them back up and running and both Bruce and Demetri have publicly expressed interest in doing that, so that right there is three versus the two you presumed would be interested.
As for Zero and S & S, it's a little hard to gauge without more information, but I don't think it's crazy to think both of them could be interested in expanding into the sport-bike world.
I think it would particularly make a lot of sense for Zero since they're being squeezed by Polaris and Harley. This could be a way they could grow to be more competitive with Polaris and Harley (or depending on their finances, it could put them under, but it would be a risk I would at least be interested in exploring if I were Zero management). And since Zero has developed a reasonably large dealer network, that makes it much easier for them than other entities to get up and running quickly.
S & S could just be interested in the engines and tooling, but I wouldn't be surprised if they were interested in getting into making sport-motorcycles. It certainly wouldn't be a crazy idea as a next step for them, but without more than a name on a court document, we can only speculate.
It is also possible that with each passing day other potential bidders could become intrigued.
Last edited by Scott; 01-06-2016 at 11:47 AM.
If I remember correctly, wasn't Erik at one time (at the beginning of EBR) working on a design consultation for an electric motorcycle? Anybody know who that entity was?
Another article with a little additional info:
http://www.biztimes.com/2016/01/06/n...-buell-racing/
I'm curious if this: "there had been interest from potential purchasers that did not attend or participate in auctions held in August and December."
Refers to S & S and Zero or if there are other, undisclosed parties that might be there next week.
It seem like in past auctions we've had rumors and speculation about multiple interested parties, but when it comes right down to it, it seems like very few people who actually bid.
There's an indication that nobody is matching the $3.15 million that GP holdings offered last time around, but I'm curious if they've been able to shore up their finances and may be prepared to make a run this time.
It seems like their phantom $3.15 million bid is what screwed everything up last time, but the fact that they even offered it shows they may have some serious interest. The extra time may have allowed them to line up financing.