Hero Motocorp to buy assets of bankrupt US Company
India’s largest two-wheeler manufacturer Hero Motocorp’s wholly owned subsidiaries in U.S is to buy certain tangible and intangible assets worth of USD 2.8 million of U.S based Erik Buell Racing (EBR). This purchase is a part of the settlement deal with court-appointed receiver in the bankruptcy matter.
The two subsidiaries Hero Moto Corp Ltd (HMCL) Americas, Inc. and HMCL (NA), Inc. have entered into a “Settlement Agreement” in the bankruptcy matter filed by Erik Buell Racing (EBR) and Erik Buell LLC.
With this deal Hero Motocorp is envisaging foraying into the US two wheeler markets and has planned to market its products in the US through the EBR network.
This deal will be second for Indian manufacture to buy any foreign motorcycle company’s assets after Eicher Motors who owned majority stakes of Royal Enfield in 1993.
EBR is on the verge of bankruptcy as in mid 2013 it has sold its 49.2 per cent stake to Hero Motocorp for USD 25 million (148 crore Rupees) and on April 15, 2015 it has filed for bankruptcy protection and had ceased all its operations.
This Settlement Agreement will help Hero MotoCorp’s in-house research and accelerate development teams in certain consulting projects.
About Erik Buell Racing (EBR)
It is an American motorcycle sport company which produced street and racing motorcycles which was founded by Erik Buell in 2009 and is based in East Troy, Wisconsin, USA.
Its first effort was to produce complete racing motorcycles and its parts under license from Harley-Davidson, but company went into bankruptcy in April 2015.
Month: Current Affairs - July, 2015