Rocky Mountain Choppers has won court approval as the stalking-horse bidder for American IronHorse's assets. The owner of the Montana-based American IronHorse, Bourget and Arlen Ness dealership, Scott Meyers, has offered $6.7 million for the bankrupt Fort Worth-based OEM.
Meyers, who also owns Black Water Choppers in Osseo, Minn., is a former senior executive of several Fortune 1000 companies, including Magnavox and other aerospace defense contractors. In talking with Dealernews about the possible deal, Meyers says he is a strong believer in the American IronHorse product line and believes the company can be pulled back into prominence.
"I just want to stay focused and concentrate on getting this back on track," Meyers says.
Meyers tells Dealernews he wants to move the company away from its mass production model that resulted in units languishing on dealer floors. "This could be a very profitable company not trying to push all these bikes out on the road. It's not necessary," he says.
A stalking-horse bidder is one selected by the company in bankruptcy to make the first bid, forestalling lowball offers.
American IronHorse co-founder and ousted CEO Bill Rucker has also submitted a bid of $6.9 million to take back control of the company he founded with Tim Edmondson. But as the stalking-horse bid, Meyer's is the initial offer that sets the bar for all potential bids. It was selected by American IronHorse for stalking-horse status, which was then approved by the U.S. Bankruptcy Court's Northern Texas district.
All of the bids are subject to bankruptcy court approval May 23 and are subject to the submission of "higher and better bids."
Check back with dealernews.com for updates on this developing story.