Dorel Industries won a bankruptcy auction to acquire Iron Horse Bicycle
Company for $5.2 million. The sale includes existing Iron Horse
inventory, trademarks and
patents.
Dorel will also pay CIT
Group, Iron Horses secured lender, $220,000 on July 15, 2010, the
12-month anniversary of the closing. CIT Group will pay at least $150,000 to the Iron Horses unsecured creditors.
Several companies, including retailer Dick's Sporting Goods,
manufacturer Kent International, Care Bicycles, and Outdoor Cycle
Group/Randall Scott, a company owned by the son of former Iron Horse
president Cliff Weidberg, also submitted bids for Iron Horse.
Dorel is the parent company of Pacific Cycles, Cannondale, GT,
Schwinn, Mongoose, and Sugo. The deal is scheduled to close on July 15.
As
reported, Iron Horse was forced into bankruptcy in March by three Asian
suppliers who were due more than $5 million. The company owes another
$4 million to CIT Group, as well as $17 million to dozens of other
unsecured creditors.
