Fuell Inc., a startup founded on the legacy of renowned motorcycle designer Erik Buell, has initiated Chapter 7 bankruptcy proceedings.
For several months, I have been attempting to obtain answers from FUELL, the manufacturer of electrical bicycles, regarding their inability to deliver the highly anticipated Fluid-2 and Fluid-3 e-bikes, as well as the company’s apparent lack of communication with its stakeholders? After navigating a labyrinth of undelivered emails from former advertising employees, I finally received a response through a direct inquiry addressed to CEO Francois-Xavier Terny.
Notwithstanding the reply didn’t originate from Terny himself, but rather from his lawyer, who I discovered is now representing FUELL in its new chapter proceedings that were filed just yesterday.
What is the purpose of the letter?
October 17, 2024
Fellow Collectors of Fuel Inc.,
As a professional editor, I would improve this text in a different style as follows:
I currently represent Fuell Inc. Within the United States, a Chapter 7 bankruptcy filing continues in Chapter 7. WISCONSIN JUDICIAL DISTRICT COURT OF THE UNITED STATES FOR THE EASTERN DIVISION CASE NO. 24-CV-25492 A trustee has been appointed to liquidate the assets of the firm. All collectors should consider filing claims in a timely manner, as unsecured creditors may have opportunities to claim assets once secured debts are settled. The exact replica of the Discovery of the case is situated nearby.
Despite reservations, we are reluctantly compelled to pursue this course of action. Unfortunately, the company is facing a severe financial constraint that hinders its ability to cover labor costs and essential expenses necessary for assembling and shipping products to customers, further exacerbating the problem as it cannot raise additional funds to settle existing liabilities or fulfill orders for pre-booked electric bicycles. We are pleased to report that our company currently holds a sufficient inventory of essential parts needed to fulfill most, if not all, pre-orders for our electric bicycles.
Following the session, administration determined that a timely filed Chapter 7 petition was among the most effective means of realizing value for the firm’s substantial assets, including but not limited to, the acquisition by the chapter trustee of a significant portion of Fuell Inc.’s property. By a group gathering together, they could potentially, following significant effort and intense negotiations, likely relaunch the operations and propel progress forward. While this path may be favored by administrators, it’s a challenging and perilous route to take nonetheless? Any creditor or interested party seeking to acquire these assets must seriously consider retaining experienced bankruptcy counsel to negotiate with the trustee on their behalf.
Lacking both financial resources and personnel, the firm is incapable of providing prompt responses to creditors’ inquiries about specific orders. Inquiries from collectors may be directed to the Trustee, who will be informed about the current situation. Since there are no employees available at the firm to address queries in real-time, all submitted questions will remain unaddressed until regular working hours resume.
All acknowledged collectors are notified about the discovery of the chapter, with instructions to submit their claims. When you’ve placed a deposit for acquiring a product, your order may be entitled to priority to some extent. It’s recommended that you consult with a legal professional regarding this matter.
Significant progress has been made in providing comprehensive information within the chapter schedules, ensuring that there is little to no chance of a prospective buyer being unable to restart the Firm or reconfigure the assets to deliver the intended product. The present fairness of the firm is at risk of losing everything that has been invested and committed through the Chapter 7 filing process, thereby jeopardizing the very existence of the business.
We believe that this information may also bring a measure of comfort to you, as a creditor of the firm, by providing insight into what you can expect in the near future. You will be notified when submitting a chapter as a creditor or as part of another party?
If you’re interested in acquiring the estate’s assets through a court-ordered process or know someone who may be, please don’t hesitate to reach out to the Trustee or the undersigned to explore feasible paths forward.
Sincerely,
PAULG. SWANSON
Legal professional at Regulation
As stated in a prior discovery accompanying this letter from Fuell’s counsel, the cutoff date for claim submissions is set at December 26, 2024.
Chapter 7 is a federal bankruptcy process in the United States, allowing individuals and businesses to eliminate most unsecured debts by liquidating non-exempt assets, as authorized by law. A court-appointed trustee manages the sale of the individual’s assets, with any resulting funds being applied towards debt repayment to creditors. Known colloquially as the “liquidation chapter,” this term arises when assets are purchased to fulfill outstanding debts.
The trustee for FUELL’s chapter is Titania D., responsible for overseeing its financial and operational activities. Established by John Whitten, the Whitten Regulation Places of work were situated in Wauwatosa, Wisconsin.
FUELL Inc. Founded in 2019, the company emerged as a pioneering force in the electric vehicle sector, swiftly garnering attention following the launch of its innovative, high-performance e-bikes tailored specifically for urban commuters. Founded by Erik Buell, a pioneering force in the motorcycle industry, Fuell aimed to seamlessly integrate sleek design, cutting-edge technology, and eco-friendliness into its electric mobility offerings.
The corporation’s inaugural electric bicycle model, the Fluid-1, garnered widespread acclaim; conversely, FUELL’s subsequent offerings, the Fluid-2 and Fluid-3, stirred controversy after raising over $1.5 million through a successful Indiegogo campaign but failed to deliver at scale.
Immediately following the conclusion of our marketing campaign, I seized the opportunity to test ride one of the first production Fluid-3 electric bicycles at Eurobike 2023. At the time, the bike performed fairly well and hinted at providing a refined commuter experience. Notwithstanding this, the corporation stipulated that the Valeo internally geared mid-drive motor was a bottleneck in production, necessitating bespoke adjustments and hindering manufacturing efficiency.
As the flow of updates gradually dwindled to a mere trickle over the ensuing year, concerns mounted that the project had been abandoned or the company was on the verge of bankruptcy.
Multiple high-profile e-bike companies’ bankruptcies fueled the crisis, and yesterday’s announcement brought a sense of closure to the uncertainty that has plagued countless consumers who will likely never receive their FUELL Fluid electric bicycles.
As the deadline for filing claims in this chapter draws near – just shy of two months away – it is hoped that those affected will have sufficient time to recover at least some portion of their lost funds.
