Just in case you needed further proof that the custom chopper craze is officially over, there’s word that Orange County Choppers, the Newburgh, NY custom bike builder is in foreclosure. Word is that the company defaulted on the July 2010 mortgage payment for their new (and over the top) headquarters, but a lawyer for OCC has a different perspective. The non-payment, it seems, was a strategic move to get the lender (GE Commercial Finance) to renegotiate the terms of the loan. When the new facility was built in 2007, it was valued at some $12 million; today, the property’s value has fallen to about $7.5 million.
The company has multiple loans with GE Commercial Finance, and their monthly nut for all loans is over $110,000. In the best of economic times, making that kind of payment would have been a stretch, but today that hardly seems possible. I’ve never been a fan of the prime time soap opera, and I’ve been critical of the rolling sculpture turned out by the Teutels on more than one occasion, but I wish them the best and hope they find a way to keep the doors open. Love them or hate them, OCC was the best thing to come along for Newburgh’s economy in a long, long time.
Source: Surroundings Me