The unpaid balance on the loan is just over six million dollars; and the loan is the largest of its kind the state of Minnesota has ever approved. E-H also owes two banks an additional eleven million dollars on top of the six million they owe the state. It is unknown if they are current on those loans, presumably they are.

According to reports, Excelsior-Henderson wants to defer payments and rearrange the state financed loan to preserve what cash they have on hand. 

This latest development comes after the company laid off half of their work force, and then sold a chunk of the company to venture capitalists for what some industry insiders felt was about twenty-five cents on the dollar. That 4.5 million dollars in VC money seems to have not arrived yet. 

The company is said to be negotiating better payment schedules with all of its major debtors. 

At this time E-H claims to be selling more than 40 motorcycles a week and recently debuted a new model, called (yes, really) the Deadwood Special.

Excelsior Henderson's stock price is reflective of the company's troubled recent history. It was trading at above ten dollars a share last January, and was in the teens briefly after its IPO, but closed at just $1.50 a share yesterday. 

-- Dean Adams