Erik Buell Racing Auction Scheduled for July 21st

Google+ Pinterest LinkedIn Tumblr

After shutting its doors, and putting the company into receivership, the legal process for Erik Buell Racing is moving right along, with a date now scheduled for the sale of the company’s assets.

Slotted to take place on July 21st, potential buyers will be able to bid on EBR’s assets, in bulk. All winning bids are of course subject to court approval, which will be granted/not granted quickly after the auction, on July 23rd.

This means that items like EBR’s unsold motorcycles, leftover parts inventory, intellectual property, etc have been grouped together, to raise money to satisfy Erik Buell Racing’s debts to creditors.

As such, the sale is considered to be a going-concern, meaning that the sale is meant to factor in the value of Erik Buell Racing as a business, and not just as a collection of assets.

Therefore, the best-case scenario for EBR would be a purchaser who acquires all of EBR’s assets, and then continues operating the brand under new ownership.

It is just as possible though that bidders don’t see the value of continuing EBR as a business, with only the basic assets being purchased at auction.

Time will tell what parties come to the auction, and what they intend to do with the pieces they buy. Stay tuned.

Source: EBR (Facebook)