Erik Buell Racing (EBR) filing for bankruptcy rose many questions about the company’s existing products and the products that it planned to jointly develop with India’s largest two-wheeler maker, Hero MotoCorp. There, however, seems to be some hope for the joint projects of the two companies which are currently in progress. Recent reports suggest that Hero MotoCorp will acquire certain tangible and intangible assets of Eric Buell Racing for a value of US$2.8 million. With this settlement, Hero MotoCorp plans to benefit its in-house research and development teams and to accelerate development of certain consulting projects, including the projects EBR was executing for Hero MotoCorp.
Hero MotoCorp, in a filing to the BSE said that the settlement agreement was signed between HMCL (NA) Inc and HMCL Americas Inc – both entities of Hero MotoCorp (HMCL) – and the receiver appointed by the Circuit Court, Wisconsin, US, in the bankruptcy matter filed by Erik Buell Racing (EBR) and Erik Buell LLC.
Back in 2012, Hero MotoCorp had entered into a technology sourcing pact with EBR to strengthen its presence in the high-end bike segment. Hero had later acquired a huge stake of 49.2 per cent in EBR in 2013 for $25 million. Through this acquisition Hero MotoCorp hoped to market its products in the US through the EBR network.
With inputs from PTI