Rad Power Bikes may close soon

[harryS]

I read that the winning bid for Rad ebikes was $13.2 million. The winner gets to wipe out the debt that RAD owes, but will still be liable for any future lawsuits, To think that investors put over $330 million into the company.

 

[harryS]

Stuff I never liked about Rad included the early bikes with direct drive hubmotors, and all the fat tire models. I did like their commitment to battery safety, although early results don't seem too good,

 

[Chazmo]

Thanks for the pointer to the article, @harryS . Any idea what this means?:
"When accounting for Rad Power’s liabilities, the total value of the bid is $14.9 million."

 

[rayray]

Thanks for the pointer to the article, @harryS . Any idea what this means?:
"When accounting for Rad Power’s liabilities, the total value of the bid is $14.9 million."

The winning bidder is assuming at least some of Rad’s debt, in the amount of $1.7M, as well as warranty claims.

 

[sc00ter]

I think that most of the trust in the Rad name has eroded. The new owner might just rebrand the product for future sales. I did read that Retrospec was one of the bidders. They have nice products and a good dealer network already setup. That would have been interesting.

 

[Chazmo]

The winning bidder is assuming at least some of Rad’s debt, in the amount of $1.7M, as well as warranty claims.

Ah, I see. Thanks, Ray. They just added that portion of the debt to the offer (seems kind of weird to me) to calculate what the winning bidder is actually going to pay.

 

[harryS]

News reports had RAD's unpaid balance sheet around $40M, so I would say their creditors are getting back 1.7/40 or less than a nickel on the dollar on average.