VOL. 52 ISSUE 16 APRIL 21, 2015 P29
thought we had secured fund-
ing, but in the end, we were not
able to get the funding in place.
Therefore we need to do the best
we can under the circumstances
for all parties in interest."
The filing for receivership
means EBR's assets will now
be sold off to the highest bidder
under the Chapter 128 process.
One sure front-runner for the
purchase of EBR's assets will be
partner company Hero Moto-
Corp, the giant Indian manufac-
turer of small capacity machines
who bought a 49.2 percent
stake in EBR for $25 million in
2013. Hero is known to want to
expand into the US market with
its own branded products and
by purchasing EBR, Hero could
rebrand the company as a wholly
owned U.S. subsidiary for future
model development purposes,
and to take care of Hero product
distribution in North America.
Purchasing EBR as a bankrupt
company would also absolve any
new owners from any warranty or
spare parts issues from the old
EBR concern.
Speaking previously with Cycle
News' Alan Cathcart, Hero Mo-
toCorp CEO and Vice Chairman
Pawan Munjal did not hide his en-
thusiasm for expanding his share
in EBR to 100 percent.
"One reason for acquiring that
equity ($25 million) was that we
are keen to enter the U.S. mar-
ket, as well as get into different
segments in the motorcycle and
scooter segments that we are not
presently in today. This was one
very quick way to do that, so we
are part owners in a company
that is already established in that
market."
When quizzed if Hero would
expand its interest to 100 percent
ownership of EBR, Munjal said, "It
depends on what Erik would like
to do, but I would say I am ready
to do so [to purchase the remain-
ing 50.8 percent share], if he
[Erik] ever wants to do it."
Now it appears Munjal won't
need Erik Buell's permission on
that.
The demise of EBR sees a
workforce currently unemployed
that includes ex-Yamaha, Boe-
ing Corp and General Motors
employees, according to the
Milwaukee Journal Sentinel.
It's a sad end for EBR, as this
is Erik Buell's second attempt at
establishing his own brand.
Buell Motorcycle Company
was founded in 1986 and ran
until 2009 after then owners
Harley-Davidson decided to wind
the company up in the midst of
the Global Financial Crisis. Buell
Motorcycles were lauded around
the world as innovative and differ-
ent, a trait Erik Buell passed onto
his new company, EBR, which
initially focused on low-volume,
racing based machines. Even-
tually the model range grew to
include the 1190 SX Streetfighter
and versions of the 1190 RS and
RX Superbike.
Erik Buell's renowned pas-
sion for racing saw his EBR 1190
machines debut under the Hero
banner in the Superbike World
Championship last year with
American riders Geoff May and
Aaron Yates. It was a season of
uninspiring results, with American
veteran Larry Pegram taking over
the running of the team and the
riding of one machine for 2015,
alongside Italian Niccolo Canepa.
With the suddenness of the
events back home catching the
team by surprise the squad was
