WAUWATOSA, Wis. (BRAIN) — An auction of the remaining assets of an e-bike and e-motorcycle brand founded by motorcycle innovator Erik Buell raised about $170,000, which will make a small dent in the nearly $7 million the company owed to secured and unsecured creditors.
Fuell, which raised millions of dollars through several crowdfunding campaigns, entered Chapter 7 bankruptcy last October. Its secured debtors list totaled almost $800,000, including $480,000 owed on a bank credit line. Unsecured debt totaled almost $6 million.
The auction house has already been paid $38,000 from the proceeds and the trustee paid clean-up costs of $2,225, leaving $128,970 to be paid first to the landlords and the trustee for insurance and other costs. If any is leftover after those fees, $25,000 goes to the estate and the balance goes to the bank.
Intellectual property was sold for a total of nearly $50,000, including the Fuell trademark, website, and patents in several lots. A few dozen e-bikes and parts also sold, with a few Fuell Flluid models auctioned for $1,150 to $1,600 each and some Fuell Folld folding fat-tire bikes sold for $475 to $600 each. Several bulk lots of batteries also sold. The buyers' names were not made public.
In its initial filing, Fuell has estimated its assets included $1.8 million in unassembled parts and inventory, plus other assets it estimated worth about $500,000. The unsecured creditors list includes Cycle Source Logistics of Ames, Iowa, an industry 3PL and logistics provider that warehoused some of the bikes and parts.
Some crowdfund backers objected to an initial auction plan that would have abandoned some e-bikes warehoused in Iowa and France. The plan was modified to include auctioning all the assets, with only unsold assets to be abandoned, meaning they are returned to the debtor and are no longer considered assets in the liquidation.
Six lots were left unsold after the auction, including one lot described as "Assorted Electric Bike Maintenance Equipment" and some office equipment and furniture.
