A year after Onyx Motorcycles owner James Khatiblou died suddenly, leaving customers with unfulfilled orders and millions in unpaid debts, the brand has been revived by its original founder.
“I’m excited to announce that I have resurrected my original brand Onyx with amazing sponsors!” Founder Tim Seward wrote in a LinkedIn post on Mondays. “Onyx is literally back to the future now!”
For starters, the company only sells about 100 RCR electric dirt bikes. It is unclear if these are newly produced units or if they are part of the batch of e-bikes manufactured earlier this year by Onyx’s Chinese supplier that were kept in limbo after Khatiblou’s death.
Seward did not respond to britcommerce in time to provide information about the company’s resurrection and what investors he got to back the company.
Seward, who has designed electric bikes for Bird and Ubco, built what would be the first Onyx electric bike, the RCR, in 2016. After launching the company with an Indiegogo campaign two years later, that design became a hit with a community of worship. a following of customers who loved the American-made feel, the ’80s appeal of the full wood-body design, and the bike’s powerful capabilities.
In 2019, Seward transferred his stake in Onyx to his friend and former coworker, Khatiblou, who stumbled as a first-time owner while trying to grow the company. Many of the decisions he made created a web of legal and financial problems that have yet to be untangled. Khatiblou died without a will or estate plan, a complication that paralyzed all operations, including deliveries to customers and payments to suppliers and creditors.
Oxygen Funding, an Orange County-based creditor, has claimed it is owed $2.2 million in debt. In May, Oxygen attempted to petition the Los Angeles County probate court to become administrator of Khatiblou’s estate, which would allow it to control Onyx’s remaining assets and apparently sell those assets to pay itself off.
Oxygen CEO Adam Lomax told britcommerce on Tuesday that he was unaware of Onyx’s resurgence under Seward. He also noted that Oxygen’s request to control Khatiblou’s estate is still in limbo, pending a court date not yet assigned, and that his company has not yet received the money.
Oxygen wasn’t the only creditor fighting for a piece of Onyx. Under a 2019 operating agreement, Kenneth Ames, a former engineering and procurement executive in the Simi Valley-based LED lighting business, and Troy Smith, a self-employed accountant based in Carlsbad, owns a 37.5% percentage interest 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 are involved in the Onyx revival. britcommerce has reached out to Ames, Troy and their attorneys for more information. britcommerce will update the article if they respond.