EBR Closes / Bankruptcy

[jetlee]

wonder how much they owe Erik?

$20M

http://www.roadracingworld.com/news/hero-motocorp-ltd-trouble-in-india/

nsiders say that Hero has not paid EBR about $20 million owed for engineering and design work EBR did on 13 new Hero models for the Indian market. EBR bore the expense of the engineering and design work, then ran out of operating capital while waiting to be paid for that work, those insiders said.

 

[BambamXB12r]

Get those bastards Erik.

 

[Hughlysses]

Maybe Erik is holding onto critical design info for the HX250R because EBR didn't get paid for it.

 

[s0dhi]

Maybe Erik is holding onto critical design info for the HX250R because EBR didn't get paid for it.

I sure hope so. It would be one of his better business decisions.

 

[RossLH]

That's not really the way chapter 128 receivership works. The company no longer belongs to Erik, and any IP regarding the HX250R (as well as the other Hero bikes) goes with the company.

 

[Hughlysses]

There are some great quotes from Erik regarding the closure of EBR in the "letter from the editor" column in this month's Cycle World. Here are a few:

We've been working on the mainstream stuff. I can't talk about what was
coming, but I will say some of it is much different than anybody would have
expected. Stuff that is 18 months away from full-volume production that people
would go "Holy s--t! EBR did that?!" It was all much higher volume and lower
price.

In response to what's going on with the sale of EBR:

Buell said there was quite a bit of interest, and those people were in touch
with the law firm in charge of the sale.

Where the business is at this time is infinitely better than where it was
with the closing of Buell.

We could start production again in a day.

 

[mrlogix]

sounds like at least he is a little smarter after the HD f*cking he received. [up]

 

[RossLH]

Erik showed up to the Homecoming (because he had work to do...he didn't actually know the event was going on), and he seemed to have a very optimistic outlook regarding the future of the business. I'm rooting for him every step of the way.

 

[BambamXB12r]

[up]

 

[thrstrmech]

[up][up]

 

[Hughlysses]

sounds like at least he is a little smarter after the HD f*cking he received.

In an interview that came out barely before all this s**t went down, the head of Hero said they were ready to buy the remainder of EBR just as soon as Erik was ready to sell. I'm convinced Hero deliberately held back the $20M they allegedly owed EBR for engineering work, and said "Oh wow, you're kind of in a bind aren't you? We'll just buy the rest of the company." and made Erik a low-ball offer for his portion of EBR. Erik talked to his lawyers and legally gave Hero a large middle finger by putting the company in receivership.

Hopefully things turn out well, maybe better than when Hero owned 49.2%.

 

[Abledcool1]

Here is an article about the coming EBR auction. Article Some recent posts from EBR's Facebook page seem pretty optimistic.