This certainly comes as a surprise! As per a report on Motorcycle Thailand, EBR has been bought by Hero MotoCorp and the company will be operational soon! The report goes on to add that Hero has already offered full employment to Eric Buell, the head of American motorcycle company.
EBR declared bankruptcy back in April this year. Instead of filing a traditional bankruptcy form they used a rather old and lesser known law called as Chapter 128 which is available only in the State of Wisconsin, the place where EBR is based. Under this law the individual or an organisation needs to ascertain that they will make regular monthly payments.
The debtor, in this case EBR, will have to send a monthly payment to the trustee which will be forwarded by the trustee to the creditor. This plan is made for a fixed duration of 3 years.
If the report is indeed true then it is a great news both for EBR and Hero fans. So can we expect Hero MotoCorp to emerge as a trustee here which came in to protect its own co-assets, namely the Hero products which EBR worked on? EBR will also have to pay a fee to the trustee (can that be the rights to the company?).
EBR was initially supposed to be auctioned on July 21 but they announced that the auction has been postponed due to some legal issues which need to be dealt with immediately. Can this whole buyout be the idea behind this?
Suggest you to consider this as a rumor for now till something official/concrete emerges…
