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Alexis Rowe
Onyx Motorbikes, the electric dirt bike brand that faced a year of turmoil following the sudden death of its owner James Khatiblou, has been revived by its original founder Tim Seward. In a LinkedIn post on Monday, Seward announced that he has "resurrected" his original brand with the support of new investors.
The revival of Onyx Motorbikes comes as a surprise to many, given the company's troubled past. After Khatiblou's death, customers were left with unfulfilled orders, and the company was plagued by millions of dollars in unpaid debts. The situation was further complicated by the lack of a will and succession plan, which brought all operations to a halt.
Seward, who designed e-bikes for Bird and Ubco, founded Onyx Motorbikes in 2016 and launched the company with an Indiegogo campaign two years later. The brand's RCR electric dirt bike, known for its made-in-the-USA feel and 1980s-inspired design, gained a cult following among customers. However, after Seward sold his stake in the company to Khatiblou in 2019, the brand's fortunes began to decline.
Khatiblou's tenure as owner was marked by a series of poor decisions that led to legal and financial troubles. One of the company's creditors, Oxygen Funding, is owed $2.2 million in debt and has been trying to petition the Los Angeles County probate court to become the administrator of Khatiblou's estate. This would allow Oxygen to control Onyx's remaining assets and sell them to repay its debt.
However, Oxygen CEO Adam Lomax told TechCrunch that he had no knowledge of Onyx's revival under Seward and that his company's petition to control Khatiblou's estate is still pending. It is unclear whether Seward's revival of Onyx Motorbikes will affect Oxygen's claims or whether the company will be able to repay its debts.
Other creditors, including Kenneth Ames and Troy Smith, who hold a 37.5% percentage interest in Onyx LLC, may also be affected by the company's revival. It is unclear whether they are involved in Onyx's revival, and TechCrunch has reached out to them for comment.
For now, Onyx Motorbikes is selling a limited batch of 100 RCR electric dirt bikes, although it is unclear whether these are newly produced units or part of the batch made earlier this year by the company's Chinese supplier. Seward has not provided further information on the company's resurrection or its new backers.
The revival of Onyx Motorbikes raises questions about the future of the brand and its ability to recover from its past troubles. While Seward's return may bring stability and direction to the company, it remains to be seen how the brand will navigate its complex legal and financial situation.
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