With the authorization of Dennis Johnson Dealer News Senior Editor, I reproduce some new information regarding the bankruptcy of Titan and the following sales of assets.
“An Arizona bank has filed an objection to the proposed sale of now-bankrupt Titan Motorcycle Co.’s assets to Arizona Motorcycle Works for $300,000. In papers filed Aug. 27 in U.S. Bankruptcy Court for the district of Arizona, First National Bank of Arizona claims it has a first rights lien on Titan’s assets and that the sale price undervalues the fair market value of the property. The bank also claims that Titan’s owner Don Proudfoot and Hope Smith, a principal in Arizona Motorcycle Works, have a personal relationship and that the latter company is subtenant of Titan’s and that this relationship has not been disclosed. These two allegations call into question that the proposed sale represents a good-faith, arms-length negotiation" between the two entities, the complaint claims. FNBA states that Proudfoots’ company, TMC Acquisitions, owes the bank about $813,000 on a $1.5 million business loan that the company took out in February 2006. "The amount due and owing to FNBA is substantially above" the sale price, the bank claims. The bank says that business loan was secured with TMC’s property, which includes inventory, accounts, equipment, the Manufacturer’s Statement of Origin for Titan’s motorcycles, listed as collateral. Arguably, the assets no longer belong to the debtor or the estate are not subject to any potential sale to AMW, or any other prospective purchase," lawyers for FNBA claim. Proudfoot originally filed for Chapter 11 protection in January. At the time, listed among the company’s top 20 creditors were S&S Cycle, Daytec Cente; SuperTrapp, and Mid-USA Motorcycle Parts. This marks the second time that the Titan brand has gone bankrupt, the first time in 2001 under chairman and CEO Francis Keery. In March 2007 Titan’s owner Don Proudfoot was quoted in Powersports Business magazine saying "I sincerely believe this is a year of change in 2007. When the dust settles, there will be many fewer people (OEMs and aftermarket manufacturers) out there."
WHAT A CRAP.hope vender got their dues.
Now this is just my opinion! but it seems to me that back in the “old days”if you pulled this shi= on somebody, the hobgoblins would show up and “things” just started blowing up and people would get lost on there way home. I don`t know it is very sad! I go along with jatinder pal, he said what I was trying to say in a lot less words.
I don’t have a dog in this fight but I know two fellas with Titans. Well, one guy and another guy gave his old lady his when he got a 61 pan. Both the Titans I know of are rattletraps.
Anyway, here’s a point. If you are a bank and a motorcycle OEM comes to you for 1 and a half million after discharging one bancruptcy, wouldn’t it seem prudent to get some machinery in place to insure payment instead of letting the other shoe drop and having to file for recovery? WTF?
Maybe it’s chump change to FNBA but I wouldn’t lend coffee money to somebody that I know has a history of bailing out.
Any updates on the proposed sale of Titan? I was in Sturgis this year and purchased some parts from them. I had just bought a new left-over 06 Radical Rigid from a dealer in Texas. After returning home and waiting for them to answer the phone in Phoenix. I discovered they were out of business. Thats a very shitty thing to do to the un-expected buyer. Oh well I really do like the bike. As for the owner Proudfoot. I am a firm beliver of what goes around comes around.I’m sure I will read about your mis-fortunes in the future. You deserve everything that will come your way.All the really bad stuff anyway! Cyril will you please keep us informed of any & all updates on the proposed sale. Thanks: BJS
BJS. It seems that the validity of the sale of Titan’s assets to another company is still challenged and remains in litigation.
Titan is no longer in litigation and the sale WAS finalized Aug 29, 2007 to Arizona Motorcycle Works LLC. The alleged “relationship” between Proudfoot and Smith is ridiculous. Business is business. Everyone will have their own opinion but should check the facts before making a judgement. We ALL have our skeletons, or do we dare to even think about that???? It just seems that Proudfoot made a bad name for himself by his business practices and everyone is judging Titan by that.
I own a Titan and love it. As in ALL Custom Motorcycles if you don’t maintain them properly of course parts will come loose.. Titan motorcycles are a terrific product and shouldn’t be judged by what one person caused.
Freespirit: Where did you get your info about Titan? I to own a Titan and I like it very much. The only thing that bothers me is that I know that I payed for a 2 year warranty when you purchase a new bike and now it is worthless. Also I bought some parts from Titan in Sturgis this year and when I got home & tried to install them they didn’t fit. Thats a shitty business practice to sell parts knowing you are going out of business and knowing they would not fit the bike. BJS
Titan needs to be put to rest….Proudfoot put the nais in the coffin and Hope, if you are so money hungry to hold on to such a sneaky sob, you will go down with him. The troll and his foolish girlfriend should not be able to keep screwing people in the biking industry! (Guilt by association = Hope).
All the Vendors including the bank should be pissed that this cat has had more than 9 lives! Go back to Canada Mr Proudfinger!!!!!!!!!!!
http://www.leeclerk.org/Criminal_detail_new.asp?CsNum=07-CF-000095&CsType=Adult - Felony