LiveWire in trouble: CEO gone, debt looming

Harley-Davidson's electric spinoff LiveWire is in serious trouble. CEO Karim Donnez resigned unexpectedly, and Roy Gallagher of Ankura Consulting Group was named chief restructuring officer. In its Q3 financials the company openly admitted substantial doubt about its ability to keep operating for the next year.

The causes: sizable debt that matures next year, recurring losses, negative cash flow and limited liquidity. Gallagher's services cost $140,000 a month. Besides reviewing financing or sale options, he will check the board for conflicts of interest.

The hopes rest on the acquired startup Dust Moto, with its Dust Hightail electric dirt bike, and the Honcho, a Honda Grom-style mini bike. The production Hightail was expected to appear at EICMA. LiveWire's annual sales have never gone beyond 1,000 bikes.

• Ankura fee — $140,000 per month
• Annual sales — up to 1,000 bikes