Erik Buell Racing Sold at Third Auction

Hero MotoCorp's former technological partner, Erik Buell Racing has now been sold at a third receivership auction for $2.05 million. The sale of EBR was approved by Walworth County Circuit Court with Liquid Asset Partners as the winning bidder.

Liquid Asset Partners is likely to play the role of a middleman to further arrange for new ownership of Erik Buell Racing. "We will not be manufacturing motorcycles, as Liquid Asset, but we will be working to put together a plan with a team that can be successful in doing that," Bill Melvin Jr., owner of Liquid Asset Partners, said.

Bruce Belfer, from Atlantic Metal Group, New Jersey, who won the first auction, could not win the auction since his bid reportedly did not conform to the terms of the auction, and was not recommended to the court.

The money from the third auction will go towards paying former EBR employees for their lost paid-off time. Creditors such as Mico Tech Co. of Japan and the Porsche Engineering Group will also be paid off. Mico Tech is owed $733,000 and Porsche Engineering Group is owed $390,000.

In April 2015, EBR announced that the company was ceasing all operations. Under an agreement, Hero MotoCorp, owner of 43 per cent of EBR's shares, acquired EBR's consulting business for $2.8 million in July 2015. Part of that consulting business reportedly included projects for developing technology and engines for Hero's motorcycle product line.