Hero MotoCorp owned a 49.2 percent stake in Erik Buell Racing before it went under, and part of that investment was for Buell and Co. to design and develop a series of bikes and technologies for the company. Now India’s massive motorcycle outfit is getting some of that investment back in a yet-to-be-approved settlement worth $2.8 million.
The terms on the agreement can be found in the official release, but here’s the salient bit:
The performance of the Settlement Agreement will help the Company’s in-house research and development teams to accelerate development of certain consulting projects, including projects EBR was executing for Hero MotoCorp at the time of filing for Chapter 128 Receivership.
Basically, EBR had some unfinished work for Hero and also owned the Indian company some cash, which the receivership would normally handle. But in this case, EBR gets $2.8 million, Hero drops any claims, and the Indian company gets what it paid for: R&D and consulting.