Easyriders Inc. Files Chapter 11

Posted on July 20, 2001

Easyriders Inc. has filed for Chapter 11 relief in the United States Bankruptcy Court for the Central District of California, San Fernando Valley Division. The bankruptcy court filings were prompted by various repayment demands and other disputes that Easyriders was having with its primary secured lender, Nomura Holding America Inc. (``Nomura''). Easyriders currently publishes more than a dozen motorcycle, special-interest and lifestyle magazines, with a total worldwide readership of more than 6 million. Some of the company's publications include Easyriders, Tattoo, Tailgate and V-Twin.

Notwithstanding these disputes, the parties entered into a cash collateral stipulation prior to Easyriders' bankruptcy filings, which will enable Easyriders to continue to operate in the ordinary course of business and pay all necessary operating expenses. Easyriders plans to emerge from their Chapter 11 cases with a comprehensive restructuring of all of their debt. With Nomura's consent, Easyriders has engaged the Westlake Village-based investment banking firm of Murphy Noel Capital to provide financial advisory services to them and to assist them in connection with their debt restructuring.

``It is unfortunate that we were forced to take this action, particularly when the company reported positive earnings for the first time during the operating period ended March 31, 2001. However, recent actions by our senior lender left us with no other alternative,'' stated Bob Fabregas, chief executive officer.

``We hope to remain a public company and emerge quickly from these Chapter 11 proceedings,'' explained Joe Teresi, chairman of Easyriders Inc. and founder of Paisano Publications Inc. ``I express regret to our creditors that we were forced to take this action. Nevertheless, in the long run, I expect the company to have a much more rational capital and debt structure, which will provide future business opportunities for our creditors,'' continued Teresi. ``Recently, Paisano Publications experienced its 30th anniversary, and I anticipate that it will continue as a market leader for another three decades.''