Hero MotoCorp to acquire some assets of Erik Buell Racing

New Delhi, July 28 (IANS) Hero MotoCorp Ltd (HMCL) on Tuesday said its wholly-owned subsidiary HMCL Americas Inc has entered into a settlement agreement with US-based Erik Buell Racing Inc (EBR) to acquire ownership of some of its assets for $2.8 million.

In a filing with the Bombay Stock Exchange, the two-wheeler manufacturer said: “As part of the settlement agreement, HMCL Americas Inc has agreed to acquire the ownership of certain tangible and intangible assets of EBR Entities, free and clear of all encumbrances, for a consideration of USD 2.8 million”.

The settlement agreement has been signed between HMCL’s subsidiaries – HMCLANA Inc and HMCL Americas Inc and the receiver appointed by the Circuit Court in Wisconsin, US in a voluntary debt consolidation plan filed by EBR.

The Indian two-wheeler major said the agreement will help its in-house research and development teams to accelerate development of “certain consulting projects” which will also include those which EBR was executing for HMCL.

EBR – a Delaware corporation, where HMCL has a 49.2 percent stake had filed for Assignment for Benefit of Creditors under voluntary debt consolidation plan in April this year.

The bike manufacturer, in 2012 had signed a technology sourcing pact with EBR to strengthen its presence in the high-end bike segment.

The company said the settlement is, “inter alia, contingent upon the approval by the Circuit Court; and the approval of the board of directors of HMCL, authorizing its joinder as a direct party to the Settlement Agreement on or before August 10”.

 

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here