Onyx Motorbikes Returns After Owner's Death

Onyx Motorbikes Reborn Under Original Founder

Following the unexpected passing of Onyx Motorbikes owner James Khatiblou a year ago, which left numerous customers facing unfulfilled orders and substantial outstanding debts, the brand has been revitalized by its initial creator.

Founder Tim Seward announced the brand’s return in a LinkedIn post on Monday, stating, “I’m thrilled to share that I have brought my original brand, Onyx, back to life with the support of some fantastic backers!” Seward enthusiastically added, “Onyx is truly going back to the future!”

Initial Production Run

Currently, the company is offering approximately 100 RCR electric dirt bikes for sale. It remains uncertain whether these are newly manufactured units or part of the inventory previously produced by Onyx’s Chinese supplier earlier this year, which had been held pending resolution after Khatiblou’s death.

Despite inquiries from TechCrunch, Seward was unavailable to comment on the details surrounding the company’s revival or the identities of the investors who provided backing.

The Original Vision

Seward, with prior experience designing e-bikes for companies like Bird and Ubco, originally conceived the RCR, the first Onyx e-bike, in 2016.

After launching the company via an Indiegogo campaign in 2018, the design quickly gained popularity among a dedicated customer base. This appeal stemmed from its American-made qualities, its retro 1980s aesthetic – notably the wooden body – and the bike’s impressive performance capabilities.

Transition and Subsequent Challenges

In 2019, Seward transferred his ownership stake in Onyx to his friend and former colleague, Khatiblou.

However, Khatiblou, inexperienced as a first-time business owner, encountered difficulties in scaling the company. A series of decisions led to a complex network of legal and financial issues that remain unresolved.

Khatiblou’s death without a will or a designated successor further complicated matters, effectively halting all operations, including customer deliveries and payments to both suppliers and creditors.

Creditor Claims and Legal Battles

Oxygen Funding, a creditor based in Orange County, asserts it is owed $2.2 million. In May, Oxygen initiated a petition with the Los Angeles County probate court to be appointed as the administrator of Khatiblou’s estate.

This action would grant Oxygen control over Onyx’s remaining assets, with the intention of selling them to recover its debt.

On Tuesday, Oxygen CEO Adam Lomax stated he was unaware of Onyx’s revival under Seward’s leadership. He also confirmed that Oxygen’s petition remains pending, awaiting a court date, and that the company has yet to receive repayment.

Other Stakeholders

Oxygen was not the sole creditor seeking to recover funds from Onyx. According to a 2019 operating agreement, Kenneth Ames, a former executive in the LED lighting industry from Simi Valley, and Troy Smith, a self-employed accountant from Carlsbad, collectively hold a 37.5% interest in Onyx LLC.

Onyx LLC also possesses ownership of the Onyx branding, as outlined in a trademark assignment agreement.

The involvement of Ames and Smith in Onyx’s revival remains unclear. TechCrunch has contacted Ames, Smith, and their legal representatives for further information and will update this article upon receiving a response.