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Thread: ANOTHER Auction for EBR!

  1. #41
    EBRforum Expert Scott's Avatar
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    Quote Originally Posted by Hughlysses View Post
    The terms of the receivership forbid anyone who was a principle with either EBR or Hero from bidding on the assets. If GP Holdings intended to place a bid, Erik could not have been their CEO.
    Here's a scary thought: Now that Liquid Assets is the owner, and those restrictions are no longer in place, could Hero be talking to Liquid Assets? On the other hand, I'm sure Erik is talking to GP Holdings and others and he's no longer restricted. He can probably also talk to Bruce more freely than he was able in the past.

  2. #42
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    Yea, that is a scary thought about Hero. Of course with backing, Erik could buy it as well.

    Demetri Melekos posted on Facebook a while back that prior to the auction, Erik was allowed to talk to prospective buyers but he was specifically prohibited from showing any favoritism. Now, I would think a firm contract could be worked out for EBR's assets that specifically includes Erik's participation, prior to the assets being sold by LAP.
    Last edited by Hughlysses; 01-18-2016 at 04:00 PM.

  3. #43
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    Another thought- here's another article on the sale: http://www.digitaltrends.com/cars/erik-buell-racin g-has-a-new-owner/

    The article states that following the sale of the primary EBR assets:

    Following this, “excess assets” will be sold off to help trim costs and increase efficiency.
    According to several sources, there are ~350 1190's (SX's and RX's) in the factory. Perhaps these bikes are the "excess inventory" to which they're referring? The new owner of EBR may want nothing to do with the products of the old EBR.

    IIRC, 250 bikes are complete and ready to go while ~100 are not completely assembled, although all the parts required are staged, and these parts are separate from an inventory of spare parts ready to be shipped. If LAP sold these bikes at just $6000 each, they would recover their original investment in EBR of $2.1M. Any money they generate from selling the remainder (machinery, tooling, Intellectual Property, trademarks, spare parts, etc.) would be pure gravy.

    I could conceive of two companies coming out of the remains of EBR: One company could sell the remaining bikes and provide replacement parts for these and all existing EBR's. Heck one big former EBR dealer, or a coalition of several smaller ones might be interested in taking over the left over bikes and parts. A second company might be formed to produce completely new motorcycles having little or nothing to do with the "old" EBR.

    It's been suggested that these bikes can't be legally sold at present as the manufacturer no longer exists, so any approvals required from the EPA, NHTSA, etc. are null and void. You'd have to hope this situation could be rectified with some discussion, legal correspondence, and payment of associated fees: "We are Acme Motorcycle Company. We have 350 motorcycles manufactured by EBR in 2014 and 2015. These motorcycles met all environmental and safety requirements at the time of their manufacture. We would like to have these approvals transferred to us so that these motorcycles can be sold, titled, and licensed."

    This would allow a truly clean break between the old company and the new one, while not abandoning existing EBR owners to the wind.

    Thoughts?

  4. #44
    EBRforum Newb heagachongoose's Avatar
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    ^ That is almost exactly what I'm suspecting will happen Hughlysses.

    Remember that bid of $3.15 Million that GP Holdings was floating but didn't pan out? Liquid Assets could potentially put them and Erik together.
    Here, scroll down: https://www.equitynet.com/c/grand-prix-holdings-usa

  5. #45
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    Quote Originally Posted by heagachongoose View Post
    ^ That is almost exactly what I'm suspecting will happen Hughlysses.



    Here, scroll down: https://www.equitynet.com/c/grand-prix-holdings-usa
    I wonder if Erik was listed as CEO prior to the auction? Supposedly anyone who was a principle in either Hero or EBR was forbidden from participating in the bidding.

  6. #46
    EBRforum Expert Scott's Avatar
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    Quote Originally Posted by heagachongoose View Post
    ^ That is almost exactly what I'm suspecting will happen Hughlysses.



    Here, scroll down: https://www.equitynet.com/c/grand-prix-holdings-usa
    So that page indicates GP Holdings is currently actively seeking investment to buy EBR. Does that seem like an accurate interpretation?

  7. #47
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    The dealer you speak of has stated he's reaching out to LAP to buy inventory. I think he wants to be "the" source for parts from now on.

  8. #48
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    Quote Originally Posted by Hughlysses View Post
    I wonder if Erik was listed as CEO prior to the auction? Supposedly anyone who was a principle in either Hero or EBR was forbidden from participating in the bidding.

    He definitely was not. I checked this page a few times when news of GP Holding's interest came out.

  9. #49
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    Quote Originally Posted by noone1569 View Post
    He definitely was not. I checked this page a few times when news of GP Holding's interest came out.
    It would be interested to know exactly what's going on, but I suspect if they can raise the capital they'll get things back up and running with Erik heavily involved.

    This is where Liquid Assets may have provided a key service by keeping things together and giving them more time to get funds together.

    . . . though if Erik and GP Holdings are working together and trying to raise capital, I'd sort of expect them to be more vocal about it. Maybe they only want to talk to serious investors and don't want the noise they'd get from a broad announcement and/or maybe they're still working on a plan and want to wait until they have that more formalized before making noise.

  10. #50
    EBRforum Newb heagachongoose's Avatar
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    This is where Liquid Assets may have provided a key service by keeping things together and giving them more time to get funds together.
    Bingo. Now his hands aren't tied anymore and the negative assets have been "taken care of" by the receivership process.

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