The attorneys handling the receivership case of Erik Buell Racing have scheduled a third auction after two previous efforts to sell the company ran into issues.
In a letter to Walworth County Judge Phillip Koss, attorney Christopher Murray said there had been interest from potential purchasers that did not attend or participate in auctions held in August and December. The letter said the parties were interested in submitting an offer that would exceed the current $1.6 milllion offer from Liquid Asset Partners, LLC, but would not top the $3.15 million offer from GP Holding USA, LLC that was subject to a financing contingency.
“Under the circumstances, the receiver believes that holding another auction to give all potential buyers an opportunity to submit qualifying bids is in the best interest of creditors and the EMR receivership estate,” Murray, an attorney at Beck, Chaet, Bamberger & Polsky, S.C., wrote.
The new auction has been set for Jan. 13.
Erik Buell Racing filed for receivership in April and closed its East Troy facilities after being unable to secure capital to continue operations. The move affected 126 workers, according to state records.
A portion of the company was sold to India-based Hero MotorCorp. A deal was in place to sell the remainder of the business to Bruce Belfer and Atlantic Metals Group, LLC. But that deal fell through and Koss held a hearing Dec. 14 to sell to another buyer.
The sale was put off after concerns were raised about whether interested parties were given enough time to object to the sale. He postponed any decision on the sale until Jan. 14 and directed Murray to ensure proper notice was given.
Court records also indicate that concerns were raised about the state of the company’s facilities as leases were set to expire Dec. 31. Murray’s letter to Koss indicates the facilities were secured.
Since the Dec. 14 hearing, 13 letters have been filed with the court objecting to the sale. Many of the letters specifically object to the sale being to a liquidation company, according to court records.