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