The story of Onyx Motorbikes is a tragic tale of a promising startup that fell apart after the sudden death of its CEO, James Khatiblou. Khatiblou, known for his warm personality and love of riding, was watching his e-bike company crumble under the weight of unpaid bills, legal problems, and a delayed shipment from a Chinese supplier. His health was also deteriorating, with breathing difficulties and trouble walking. Then, on December 12, 2023, Khatiblou died unexpectedly from a pulmonary embolism.
Khatiblou’s death left Onyx Motorbikes in a state of uncertainty. With no will or succession plan in place, the future of the company and its assets became unclear. Currently, no one owns Onyx Motorbikes, and all operations have come to a halt. Oxygen Funding, a creditor owed $2.2 million by Onyx, is seeking to become the administrator of Khatiblou’s estate to resolve the company’s issues. However, there are legal battles between Oxygen Funding, former shareholders, and the Chinese parts supplier over control of Onyx’s remaining assets.
The story of Onyx Motorbikes also sheds light on the challenges faced by sole business owners who fail to plan for their company’s future after their death. Khatiblou’s journey with Onyx began when he acquired the company from its founder, Tim Seward, for just $1 in 2019. Although Khatiblou was dedicated to running Onyx and getting cool bikes into the hands of customers, he made some mistakes as a first-time business owner. He signed himself as a personal guarantor for lending agreements and overspent on supply and accounting costs.
Additionally, Khatiblou had a strained relationship with his two shareholders, who eventually sued him. They claimed a percentage interest in Onyx and were involved in company affairs. Khatiblou attempted to remove their decision-making powers but faced legal complications. Oxygen Funding entered the picture as a creditor, providing cash flows to Onyx and holding its supplies and assets as collateral. Khatiblou’s passing left Oxygen and other creditors with only the remaining e-bike supply as a means of repayment.
In the days leading up to his death, Khatiblou’s mental capacity declined, causing concern among his colleagues. His mother revealed that he had been ill for months, even being hospitalized. Onyx’s purchasing director noted that Khatiblou was slipping in his responsibilities, prompting others to step up and try to save the company. However, Khatiblou’s death left a void that Oxygen Funding is now seeking to fill as the administrator of his estate.
The complicated web of legal and financial troubles surrounding Onyx Motorbikes demonstrates the importance of succession planning and proper financial management for businesses. The fate of Onyx remains uncertain, with assets split between creditors and legal battles over control. It’s unclear if the company will ever exist again or if its brand will be revived by former shareholders. The story serves as a cautionary tale for business owners to plan for the future and protect their assets to avoid such complications in the event of their death.
