Orange County Choppers Facing Foreclosure

01/27/2011 @ 11:46 am, by Jensen Beeler40 COMMENTS

Orange County Choppers Facing Foreclosure Orange County Chopper building 635x423

Unless you’ve been living under a rock, only have basic cable, and don’t frequent moustache competitions, you’ve likely heard of Orange County Choppers, American Chopper, and the Teutul family. Originally started by father (Paul Sr.) and son (Paul Jr.), the small theme bike builders of Orange County Choppers came to fame when The Discovery Channel (later moved to The Learning Channel) picked them up for its hit show American Chopper.

Usually centering around a bike with spider theme, and the generally dysfunctional relationship between Paul Sr. and his sons, the show almost hit the skids when Paul Jr. left the company to start his own venture Paul Jr. Designs.

As the father and son battle out in court over a stock buyout between the two Teutuls (Paul Sr. has a 80% share, Paul Jr. 20%, and there’s some interesting buyout clauses in their ownership agreement), Discovery pitched a new concept for the show, calling it American Chopper: Senior vs. Junior, which follows the two motorcycle shops as they struggle to build bikes in the moments when they aren’t trying to destroy each other. Throwing chairs while discussing business issues is just good family fun and a totally appropriate way to communicate with another person, right?

Whether you take Junior’s side or Senior’s, or even follow the melodrama as it still airs on television (or TMZ), there’s a very real possibility that Orange County Choppers could go into foreclosure, as GE Capital has reportedly not received a payment from Paul Sr. in sometime.

According to the Long Island Press, OCC has missed several mortgage payments: one for $96,400 and another for $14,000. Financed through GE Capital, Orange County Chopper’s failure of payment is reportedly not because of a lack of funds (this seems somewhat dubious however, but we digress), but because of the loan agreement’s terms and payment amounts.

OCC is claiming that its building has been significantly devalued because of the recession, and accordingly should have its payments lowered. While the value of the real estate has likely been lowered in the market collapse, we think it’ll be a cold day in hell that OCC gets its loan principal reduced, although refinancing might be possible (though not likely very advantageous).

If payments continue to be withheld, OCC’s lenders will have no choice but to foreclose on the property, effectively putting Orange County Choppers out of business. More as we get it.

Source: Long Island Press

Comment:

  1. Silver says:

    Sounds like the old man ate a Waaaaa burger and some french cries. My house value went down so won’t you please reduce my principle, Mr. Fargo?

  2. John says:

    So, you’ve got an elaborate, limited use building to manufacture a product that had a very limited market before the economy tanked?

    At some point, I think the bank and OCC will come to terms and some arrangement will be worked out because foreclosing won’t help the bank at all. This building was purpose built, so it is not very marketable. However, with most “real” manufacterers struggling to sell product, it is still going to be difficult for OCC to be a profitable concern. Without TV revenue, forget it.

    The big spat at this point is SR wanting to “buy out” JR for Zero dollars contending that the company is worth nothing. Seriously, it is beginning to look just that way. If I were representing JR, I would suggest he settle for some of the bikes he built in exchange for a surrender of his stock, indemnification from any OCC debt and a “leave me the f**k alone agreement from his father.

    If things could not get worse, the portrayal of SR on TV is of an irrational, jealous, self centered ass. That image can’t help him sell super expensive theme bikes to corporate sponsors. JR should get what little he can an bail on that mess pronto.

  3. F1 says:

    ,, another example of no business sense. The formula would work if everything was in scale. One look at that overkill building is all it take to know that excess is not limited to the bikes. “duhhhh, what’s a mortgage”. I guess that the market for bikes that are virtually impossible to ride anywhere else but a 30mph straight city street is drying up. Works of art they are,,, ride-able for more than 10minutes at a time, they’re not.

  4. Willie says:

    What ever happened to Mikey ?

  5. Tlspilot says:

    Mikey is probably in rehab again

  6. Other Sean says:

    Sad, I used to enjoy the show…ironically before I rode motorbikes. Too bad they couldn’t have gone out on top and actually made some headway in the counseling they supposedly did.

  7. Damo says:

    If you want to watch good drama free two wheel television check out the Cafe Racer show on HD Theater. Pretty good show.

    OCC makes me embarrassed to be an American.

  8. irksome says:

    NOOOOooooooo!!!

    Do you realize you’ve just created a thread that, for at least the next year, will allow a bunch of people who actually care to have another circle jerk around all matters surrounding the Family Teutel?

    Go outside and listen. You hear that? That’s the sound of our collective IQ dropping yet another 10 points.

  9. irksome says:

    Go see #1 in the “Top 5 Related Posts”.

    Dec 29th, 2009 and it’s STILL GOING! If I had the cash to burn, I’d rent them all a hotel room so they could live out their hot man-on-man fantasies.

    Not that there’d be anything WRONG with that.

  10. Dr. Kenneth Noisewater says:

    Oh, btw, any loan forgiveness or writedown in principal will still need to have taxes paid on it.. Any debt forgiven by a bank gets a 1099-C sent to the debtor, unless they’re in bankrupcy…

    Plus, Senior, your name is mud, and good luck in getting vendor credit if the foreclosure goes thru or even if you get a writedown..

  11. Greg says:

    If foreclosure goes through, good riddance.

  12. Orange County Choppers Facing Foreclosure – http://aspha.lt/8v #motorcycle

  13. gildas says:

    I would like to pick up some of their tools if they do…

  14. John Morrow says:

    Dibs on the Flowjet

  15. 76 says:

    holy shit they have (had) a hell of a building. Sucks for them, cant really say you didnt see this coming. They built gimmick bikes, bikes people really dont need unless they have gobs of cash pouring out of their pockets. They had one recipe and cooked the sh!t out of it, when you reach your peak you must die.

  16. Mr. Sense says:

    Pleople, JUDAS is alive and well.
    Sr. did whatever he could to raise his children to the best of his knowledge. It’s a given that he is not the best father in the world; however, he is a better father than 60% of the fathers in the US.
    Sr. biggest mistake was to give Jr. 20% of his business.
    Sr. was a good teacher for Jr. He gave him the skills needed to become a good bike builder or should we say assembler.
    In any case, Jr. like a good Judas, instead of taking self responsibility and report to work on a timely manner, he dicides to quit and start his company taking the company secrets with him and trying to take all OCC customers as well.
    Sr. mistake was to do business with his own family.
    Regardless of the situation, the show will not survive without either Sr. or Jr.

  17. Zardoz says:

    I have soooo many thoughts about Sr. and the way he provided for the next generation and the loving care with which he handed over the reins so others could provide for coming generations but I’d better not. Not enough bandwith…

    But with respect to the foreclosure:
    Considering his nature which has presented itself transparently through so many episodes he is clearly scuttling the ship. If he can’t have full control he is going to be damn sure no-one else is going to have it. Burn the house down! And what is the most effective way to make sure Jr. gets NOTHING? Foreclosure of course.

    Truly cutting off your nose to spite your face…

    *sigh*

  18. John says:

    In the universe I live in, Jr. was fired. But, each to his own reality. Sr. is better than 60% of the fathers out there??? Wow! I’ll have what that man is drinking please.

  19. JC says:

    Truly a sad situation. They had everything going for them. Travelled the world, met and hung out with celebs and all the free publicity that went with the show. To piss all that away! Both of them are to blame, maybe Sr more than Jr but Jr did act like a spoiled brat in the beginning. Hope someone learns a lesson from this.

  20. I’d watch the show over the last several years and saw the ‘garage-mahal’ of a shop/showroom they built, then see Sr.’s house and all the vintage cars and thought to myself,’there must be a LOT of money in those things’, but never could really believe it.

    Of course, an episodic TV show compresses a lot of time and life into one hour segments, but I could not believe that this was a long-running business; i.e., once the novelty wore off, their receipts would downgrade into a more sustainable level of income that would not seem to finance this sort of extravagance. I look at Arlen Ness, surely the father of this genre. Even with a large aftermarket business, the occasional customs they sell in limited numbers, and their alliance with Polaris/Victory
    (and, evidently a succesful set of relationships with his son and grandson), and the best name recognition in his field, I don’t see this extravagance on his part.

    I also have never understood how the ‘suits’ of corporate America could have warmed up to these guys. I can’t see them being invited to Pebble Beach or The Masters by some corporate client. Don’t imagine there’s a stack of Wall Street Journals at OCC. Probably aren’t going to Omaha to hang with Buffet.

    I wish them the best, but it would not be hard to imagine a hard landing out of all this.

  21. LutherG says:

    “however, he is a better father than 60% of the fathers in the US.” Whaaaat?

    he is SOL. Banks make more off the write off than if they restructure.

  22. Claude Desilets says:

    My father was far from being a great dad but he was 500% a better father than SR, anybody that treats their kids like garbage is garbage to me, Jr Vinnie and Mikey made that show and that made the old man jealous. Jr should get 80% of the company and Sr. 20%.

  23. Tommy B says:

    This whole thing is sad and I for one wish everyone the best. Sr. may have had some talent at one time, but he is defiantly threatened by Jr. Creativity now. If he wasn’t, do you think he’d be putting his family through this? Sr. is troubled and needs more than an attorney to resolve this. How could a father berate his children on public TV much less in private? Everyone involved has a percentage of responsibility and we don’t have the inside track to any of this. Unfortunately the network controls what we see and hear and leaves us to speculate what we believe to be the correct answer.

    I want to see how to build choppers and the creative process that makes it happen. I’d also like to see answers to fan mail and how to segments without yelling, tantrums and profanity.

  24. Tommy B says:

    Looking forward to a good show tonight. Let us all wish this family the best.

  25. BeckyH says:

    It is an old premise that anger generates from fear. So why is Paul Sr. so afraid and of what? Is he afraid of losing the business, the love of his sons , his health or his sobriety? I contend it is all of the previous reasons. Unfortunately he has lost or is losing all of them including his sobriety. It is one thing to be a recovering alcoholic and another to be a “dry drunk”. Paul Sr. is the latter because while he isn’t drinking he is still going through the same behaviors.

    I hope this family is able to face their issues and reconcile but without Sr. dealing with his demons first, only heartache will prevail.

  26. Tommy B says:

    Rather than fall back on the support a family can provide, Sr. continually invents ways to alienate the family. Jr. has not bad mouthed Sr. and I’m proud of him for that. I’m anticipating Jr. firing Odie, and praying we can get to view some new bike builds.

    I think your right BeckyH.

  27. Tommy B says:

    Nice to Sr. reach out with the photo of him and Jr.. Finally odie is gone.

  28. Tommy B says:

    Odie lied, he was fired, and he did not just walk out. In the episodes I’ve watched Jr. does some welding and building. Both the OCC & PJD bikes turned out nice, but I favor the innovativeness from PJD.

    Now TLC, bring back PJD it would be a show I could watch with my grandson and not listen to bleeps…..

  29. Sherry M says:

    I agree with Becky H. Paul Senior definitly is on a Dry Drunk unless he is drinking again. I cant see how he is working the 12 step program at all. It is so sad to see how critical and demeaning he can be to paul jr. who is so very talented. How is it that paul jr only gets 20%? He created the OCC logo which is still being used and did most of all the designing of the bikes with OCC. All this and his own father continues to sue his own son., Not once but twice. As they say in the 12 step program..Gods will be done, not mine.

  30. johnny B says:

    Maybe Sr should get a “good” business lesson from Arlen Ness. He is not jealous of his son, nor his grandson. Arlen started his business in a “little” shop in San Leandro, Ca. He’s not on television, but he has a huge facility, co-designs victory bikes, and over the years has produced some “killer” bikes. Sr seems vindictive, jealous of his own son. A may have been his money, but without his son, Rick & Vinnie, there would not be any Orange County Choppers. Sr, get a grip man!

  31. Not many people are buying expensive piles of chrome that do not handle.

  32. Tommy B says:

    I can’t imagine OCC being what it is today without Jr., Vinnie & Rick’s participation. Sure Sr. started the business, but Jr. is only asking for a mere 20%, and has to fight to get it. Jr. has managed to not only start a new business that Sr. said he wasn’t capable of, but become successful in a short period of time. While Jr’s business is flourishing, Sr has managed to trash OCC. Sr. wants all the credit for the success of OCC, fine give it to him, but give Jr. the 20% he deserves. Sr. should also get all the credit for trashing OCC. Face it he’s fired all the people that make up PJD.

    12 step or no 12 step, there is no reason for alienating family, and Sr. should take all the credit for destroying his family. If this is a TV show which TLC has scripted, then TLC should take some responsibility of doing what it can to get this family the help it needs and produce a TV show that it would be proud of and the viewers could once again enjoy. They turned a show about building bikes into a show about a dysfunctional family.

  33. KCT says:

    Talk about a dysfunctional family! Senior constantly berates Jr eveyr chance he got/gets. Sr sits in his office like it was his throne, and then came out into the shop once in a while to yell at Jr and claim that he, Sr, could do something much faster and better than Jr. Yea, right. Remember watching him try to wire a bike and then he had the audacity to tell Jr he could wire a bike in 10 minutes? I’m amazed Jr, Mikey, Vinnie and several others stayed on as long as they did at OCC. The ones remaining there are mostly suckups, except for Rick. I’d like to see Rick work for Jr. And the new law suit Sr whipped on Jr is just another shot by the old man to see that his son’s career and business fails. He and his lawyers have no proof that Jr sought out the business with OCC’s clients! If I were Jr, I would countersue with a harrassment lawsuit, defamation of character, fraud, hiding company assets, etc. And, by the way, if Jr.s 20% of OCC is worth nothing, then why won’t Sr sell his 80% to Jr for nothing? Sr is on a road to self destruction, and I wonder if he won’t do some jail time for his shennagians that we don’t hear about. And not paying the mortgage payments because the economy has tanked and the value of his building is less is pure BS! If the economy had taken off like a rocket, would he be crying to the mortgage company to INCREASE his payments because the value of his building had increased? Ha! We KNOW he wouldn’t! He’s so two-faced it isn’t even funny. And I seriously doubt he’llever have a relationship with his 4 children again. He’s done way too much emotional damage to be able to recover. What a jerk he is… If he was my father, I’d have left the company a long, long time ago.

  34. WAC says:

    Meathead and his doorstop son….There are folks out there that actually build descent bikes and were before this clown squad came along and will continue – profitably. I must admit that I watched the show but tired of it pretty quick, they didn’t convey anything of value. How could they convey anything by taking parts out of a box and bolting them together or sending a steel spider web out to be chrome plated then bolting it on some conspicuous place.

    Then the fame and notoriety went right to the point of their heads. It’s amazing that Sr. takes time away from the mirror to accomplish anything at all. Jr. tried to show something but IMO is still handicapped and is a crybaby just like his punk-assed dad. Good riddance clown squad…

  35. JaLee says:

    The way Sr constantly puts Jr and Mikey down is pitiful. He should be ashamed of himself. He is the most selfish disgusting person I have ever seen. He is so jealous of his sons that he would rather live without his family than admit he made a big mistake. He owes Jr big time. Without Jr designing the bikes he never would have made it. Its a darn shame he is to stupid to see what he has done. The harm he created for his family can never be repaired now. He only has his wishy washy wife and nothing more…

  36. You all tend to forget that it is the fighting in the show that gave it the dynamics and turbo-launched OCC. However, Sr. has been found to take steriods and I know from experience by some of my former customers (I am in the Wellness Business) that steriods/testosteron ecactly drive you over the top as they did to Sr.
    People using steriods/testo get very explosive but also suffer from a blown self-image.
    You can see now that Sr. is off the steriods and that leads ex steriods-users often into depression.
    Resulting in a destructive one-way-down mode.
    I have seen it many times folks, my company was founded when fitness/bodybuilding really took off in the 80-ties and as to the part of my customers that took the steriods/testo their road was very similair to Sr’s resulting in broken relations/mariages/business.
    Sr. was a drunk and he has traded that for steriods. Damn shame. Coz I guess deep inside he is a good person.

  37. Tommy B says:

    Well put Hans. We haven’t seen the last of these guys, and i’ll bet there will be a season 9 & 10. I personally wish the best for the whole family. Hell my family has its ups and downs and I’d hate to have it played out on public TV. I found last week’s episode interesting, hearing the side of the producers and camera men. There have got to be many sides we haven’t seen.

    I still think TLC has the responsibility to put together a family show and leave out the BS. Let’s hear comments from the fans, and suggestions on building bikes. Let’s put a positive spin on this and stay away from the Jerry Sringer mantality.

    What do you think?

  38. Me! says:

    I’ve watched the Senior vs Junior show (American Chopper) off and on. I will say I don’t enjoy it as much as I have in the past. One thing that sticks out to me is how the employees @ O.C.C. kiss Paul Sr’s a s s. Yes, I know they are going to take the side of the person signing the paycheck. IMO, they come off as a bunch of fakes. They’re walking around imitating Pauly-poking fun only to satisfy Sr. The saddest thing about all the a s s kissing is-they are happy Pauly is gone thinking they are going to step up into his position (Brown Nose 101).

    What gets me is how he talks shit about P Jr. “oh he doesn’t even like motorcycles. he can’t build a bike by himself. he took credit for all the work Rick Petko did.” Etc Etc. Fame has gone to Paul Sr’s head.

  39. big dog says:

    the producers of the show only show you 50 MIN .out of 80 HOURS that are filmed,your basing your opinion only on what you see,,,, hang out all week, spend the time ,5am to sometimes past midnight ,7 days a week for a month,, and you will have a more complete picture of what Really happens in their life

  40. To Mr. Tommy B;

    I agree 100%, with you and want to add that all the people here with the strong opinions should ask themselves why they watched the show in the first place. Was it all for the technics of the bikes?
    Not likely. Anyway. In the end it will work out.
    I myself hadda time-out not speaking to my father for 14 years.
    But we regained contact things were put to rest and we had a good time.
    Two years after that he died of a sudden and aggressive form of cancer.
    So, what would I have felt I had stayed stubborn/proud? And had lost him without seeing him alive?
    Its like the frase in Pulp Fiction where Marcellus Wallace said: “Pride never helps, it only hurts. F*ck Pride!”
    A bit roughly said, but true to the bone.