Erik Buell Racing’s remaining assets have been auctioned off for USD 2.25 million (Rs 14.3 crore). Of the 37 potential buyers who had shown interest in the American firm, the winning bid was made by Atlantic Metals Group LLC on August 5.
With this move, Atlantic Metals Group has acquired all of EBR’s manufacturing as well as intangible assets. Last month, Hero MotoCorp, which already has a 49 per cent minority stake in EBR, bought out a part of EBR’s assets for USD 2.8 million (Rs 17.86 crore). In this settlement, the Delhi-based two-wheeler manufacturer purchased all of the engineering work it had contracted EBR to do on small-displacement Hero motorcycles.
Between this auction and Hero MotoCorp’s purchase, EBR has raised over USD 5 million (Rs 3.19 crore). Of this, USD 2,02,000 (Rs 1.2 crore) will go towards the salary of the former EBR employees. An ideal scenario for EBR would have been the one in which an investor or motorcycle manufacturer stepped in and bought all the assets. However, with the assets going to a supplier of rare metals and alloys, the company’s revival now seems like a distant dream.
