A year after Onyx Motorbikes owner James Khatiblou died suddenly, leaving customers unable to fulfill orders and millions in debt owed, the brand was revived by its original founder.
“I’m excited to announce that I’ve resurrected my original brand, Onyx, with amazing sponsors!” founder Tim Seward wrote in a LinkedIn post on Monday. “Onyx is now literally back in the future!”
The company is only selling about 100 RCR electric dirt bikes to start. It’s unclear whether this is a newly produced product or part of a batch of e-bikes made by Onyx’s Chinese supplier earlier this year that were left in limbo after Khatiblou’s death.
Seward did not respond to TechCrunch in time to provide information about the company’s revival and the investors it has secured to back it.
Seward, who has designed electric bikes for Bird and Ubco, created the first Onyx electric bike, the RCR, in 2016. After launching the company with an Indiegogo campaign two years later, its designs gained a cult following. It follows in the footsteps of customers who loved the made-in-the-USA feel, the wooden body design with 1980s charm, and the powerful performance of the bike.
In 2019, Seward transferred his Onyx stake to his friend and former colleague Khatiblou. Khatiblou happened to become the first owner while trying to expand the company. Many of the decisions he made created a web of legal and financial problems that are still unresolved. Khatiblou died without a will or succession plan. This halted all operations, including customer deliveries and payments to suppliers and creditors.
Orange County-based creditor Oxygen Funding claimed it was owed $2.2 million. In May, Oxygen attempted to petition the Los Angeles County Probate Court to become conservator of Khatiblou’s estate. This gave Oxygen control of Onyx’s remaining assets, ostensibly to repay them by selling them.
Oxygen CEO Adam Lomax told TechCrunch on Tuesday that he had no knowledge of Onyx’s revival under Seward. He also pointed out that Oxygen’s petition to take control of Khatiblou’s estate remains in limbo, awaiting an as-yet-unspecified court date, and that his company still hasn’t received its money back.
Sansan wasn’t the only creditor fighting over pieces of onyx. Under a 2019 operating agreement, Kenneth Ames, a former engineering and sourcing executive for a Simi Valley-based LED lighting business, and Troy Smith, a self-employed accountant based in Carlsbad, own a 37.5% stake in Onyx LLC. Onyx LLC is also the entity that owns the Onyx brand pursuant to a trademark assignment agreement.
It is unclear whether Ames and Smith were involved in Onyx’s revival. TechCrunch reached out to Ames, Troy and their advisors to find out more. TechCrunch will update the article when we hear back.
