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”.