GLOBAL MOTORSPORT GROUP, INC., AGREES TO SALE WITH DAEI-IL USA

Global Motorsport Group, Inc., (GMG) announced that it has agreed to sell its assets to Dae-Il USA, Inc., as a going concern. According to their press release, the sale includes all of GMG’s US operations – including Custom Chrome, Motorcycle Stuff and Jammer divisions, and the stock of Global Motorsport Group GmbH, which manages all of GMG’s European operations. In order to facilitate the sale process, the Company said they filed a voluntary petition for reorganization under Chapter 11 of the US Bankruptcy Code. The filings were reportedly made in the US Bankruptcy Court for the District of Delaware.
The Company announced that it has reached an agreement with its lender to provide debtor-in-possession financing, subject to Bankruptcy Court approval, to fund the Company’s business operations while it completes the sale process. This financing will reportedly provide the Company the necessary funds to continue operations in the normal course of business, keeping all of the Company’s distribution facilities open on normal schedules and fulfilling customer orders. The Company does not foresee any changes in employee numbers or facility locations.
The release said, the purchase agreement is subject to the approval of the Bankruptcy Court. Definitive documents will be filed with the court, along with bidding procedures noting that qualified bidders will be provided an opportunity to make higher and better offers for the purchase. It is anticipated that the sale will be completed in March.
“We are pleased to have entered into an agreement to be acquired by Dae-Il USA and we are confident that this transaction will position GMG to reestablish its leadership position in the marketplace,” said Scott Avila, chief restructuring officer of GMG. “We have carefully reviewed our options and believe that a sale will provide the best long-term prospects for the Company’s customers, vendors and employees.”
“We look forward to supporting GMG’s success and continuing operations as a stand-alone business,” said Nace Panzica, president of Dae-Il USA and the original founder of Custom Chrome. “We are committed to investing in GMG’s product lines and outstanding customer service. With the continued support of our faithful employees, loyal customers and valuable vendors, I am confident GMG’s future will be a success.”

EXCESSIVE SPEEDING COULD COST FLORIDA RIDERS THEIR BIKES

WWSB ABC 7 Florida’s Web site reported that a bill filed in the Florida House could make it so that riders charged with reckless driving or exceeding the speed limit by 50 miles per hour could be arrested and have their bikes seized. “Riders later convicted of those offenses could lose their motorcycle licenses for 10 years,” the site explained, adding, “The bill’s sponsor, Republican Representative Carlos Lopez-Cantera of Miami, says the state needs to send a tough message to motorcyclists who drive recklessly on the highway.” Members of the House’s Committee of Infrastructure have reportedly postponed passing the bill until they can address concerns regarding the severity of the punishments in it.