At last after the open auction of EBR being postponed Hero MotoCorp has entered into a settlement agreement with receiver appointed by the Circuit court of USA. It is now clear that Hero MotoCorp is going to own some of the remaining assets of Erik Buell Racing including their complete and certain incomplete product units along with EBR's research and development rights.The news brings hope for all EBR employees and for the Hero MotoCorp future projects which are already in transit with the help of EBR. It is now can be considered that the ongoing projects of Hero and EBR partnership will be continued without any delay and any hindrance. Hero MotoCorp which is already a stake holder of 49.2% in EBR is going to increase its stake in the EBR and further strengthening its position.
After Hero MotoCorp formally receives the rights and the assets of EBR worth $2.8 Million, which will be done by 10th of August, it will be clear that whether Hero MotoCorp will get into 100% stake in EBR and completely hold the company or not. It was all likely to happen since EBR declared bankruptcy later this year. Hero was the sole company holding second largest stake in the company would not let the things go out of their hands just like that and therefore a cash rich company like Hero MotoCorp was expected to take this step.
With the steps being taken by Hero it is now almost certain that we are going to get the motorbikes like HX250R and Hastur sooner than later, that were otherwise already got delayed due to the EBR's bankruptcy episode.
By: Farhan Kashif