The remaining assets of Erik Buell Racing (EBR) were sold at auction Wednesday, August 5 to Atlantic Metals Group, LLC for $2.25 million, according to court documents.
EBR sought court protection from creditors, entered Receivership and shut down its motorcycle manufacturing and engineering operations in April of 2015.
There were 37 potential buyers who signed confidentiality agreements to receive confidential due diligence related information concerning EBR from the court-appointed Receiver, 13 potential buyers conducted site visits to inspect EBR’s assets, and two registered bidders attended Wednesday’s auction at the Milwaukee Athletic Club, in Milwaukee, Wisconsin.
Prior to the auction, Atlantic Metals Group, LLC entered into a purchase agreement (a.k.a. the Stalking Horse Bid) with the Receiver to purchase all of EBR’s motorcycle manufacturing assets including machinery, tooling, motorcycle inventory, parts inventory, accounts receivable and intangible assets for $2.25 million, according to court documents.
At the start of the auction, the Receiver notified all bidders of the Stalking Horse Bid and that no bid lower than $2.4 million would be accepted.
No bids were made at the auction, and the Receiver is now seeking court approval of the sale of EBR’s assets to Atlantic Metals Group, LLC.
“The Receiver has been advised that the Buyer is ready, willing and able to close on the purchase of the Assets with no contingencies whatsoever, other than approval of the proposed sale by this Court and obtaining free and clear title to the Assets,” read the court documents.
The court filing did not provide any additional information about Atlantic Metals Group, LLC, except that “Neither the Buyer nor its principals of the Buyer are or ever have been shareholders, officers, directors or members of EBR. The shareholders of Erik Buell Racing, Inc., Mr. Erik Buell and Hero MotoCorp, are not shareholders or affiliated with the Buyer.”
Prior to the auction, the Receiver entered into a Settlement Agreement with Hero MotoCorp, a 49% minority owner in EBR. In that agreement, Hero MotoCorp purchased for $2.8 million all of the engineering work it contracted EBR to do on small-displacement Hero motorcycles, according to the Milwaukee Journal Sentinel.