| Author | Message | ||
     Noone1569 |
http://www.jsonline.com/business/erik-buell-racing -motorcycle-company-deal-hits-a-roadblock-b9961675 4z1-350596331.html The plan to restart Erik Buell Racing motorcycle company of East Troy faces a roadblock that's sending it back to bankruptcy court, it was revealed Monday. Erik Buell Racing was the sequel to Buell Motorcycle Co., which Harley-Davidson Inc. owned for more than a decade before dropping the brand in 2009 and leaving company founder Erik Buell to start over on his own. Court records showed the company had $20.8 million in assets and $20.4 million in liabilities when it shut down in April and sought court protection from creditors. In August, motorcycle enthusiast Bruce Belfer of West Allenhurst, N.J., bought the manufacturing assets of Buell for $2.25 million, while Hero MotoCorp. of India paid $2.8 million for Buell's consulting business. Monday, Belfer said the deal is headed back to bankruptcy court, for another court-ordered auction, because problems with the first settlement meant that he could not secure financing to recapitalize the business because of an uncertain balance sheet. "I've done some tough deals in my career, but this was, in my opinion, intentionally complicated ... If you want some idea what it's been like, try taking a deep breath on August 5th and holding it for three months," Belfer said. Belfer said he is still committed to buying Erik Buell Racing and will be at the Dec. 10 court-ordered auction. "Throughout this, I have made a point not to make any promises before I was in position to deliver. I know this has frustrated some of you, but the worst thing any business can do is make commitments it is not yet able to keep. Bear in mind, the only other bidders were all liquidators. I'm used to keeping my promises, and I promise you this: I don't quit," Belfer said. This story will be updated throughout the day. | ||
| Hughlysses |
Article updated with additional info including comments from Erik: http://www.jsonline.com/business/erik-buell-racing -motorcycle-company-deal-hits-a-roadblock-b9961675 4z1-350596331.html |
