Hero MotoCorp had announced a strategic partnership with U.S.A.'s Erik Buell Racing. The duo planned on manufacturing and selling motorcycles as well as scooters in developed markets.
The Indian two-wheeler giant had purchased approximately 49 percent of shares in EBR. They have, however, announced that they will be filing for bankruptcy under Chapter 128 of Wisconsin's bankruptcy alternative.
Erik Buell Racing has long bill of outstanding liabilities, which account for nearly USD 20 million. The bankruptcy alternative will offer protection to the company from creditors.
Hero MotoCorp had partnered with EBR to get valuable information on development of their higher displacement motorcycles. The filing for bankruptcy could mean that too had parted ways before this announcement.
EBR was previously owned by fellow American two-wheeler manufacturer Harley-Davidson. In 2009 the cruiser manufacturer exited and Hero MotoCorp entered the scene.
Erik Buell Racing has stopped all of its operations and has left almost 126 employees without a job. Their facility was situated in East Troy, Wisconsin, U.S.A. and were manufacturers of street and race motorcycles.