In related actions, the company also announced that it had temporarily ceased manufacturing operations and, as a result, had been forced to lay off approximately 101 employees of its 116-person workforce.

"This is a severe step that we would have preferred not to take," said Michael Meyer of the law firm Ravich, Meyer, Kirkman, McGrath & Nauman, bankruptcy counsel to the Company. "However, it does provide the necessary breathing room for the company to continue to seek the financing or a strategic transaction that is felt to be in the best interest of customers, dealers, shareholders and employees."

The company intends to file a plan of reorganization with the Bankruptcy Court once it has secured a commitment for financing or a strategic transaction.

"We remain strongly committed to the continuation and long term success of this company," co-founders Dan, Dave and Jennie Hanlon said. "We have continued to make significant progress in a number of key areas such as dealer network development, inventory control, and cost management. Despite these improvements, our decreased liquidity made it impossible to maintain normal operations."

The Company also announced that, with its lack of additional financial resources, its relationship with The Platinum Group and any personnel from The Platinum Group that acted as officers of the Company was discontinued.

The Nasdaq Stock Market announced that the trading halt status in Excelsior-Henderson Motorcycle Manufacturing Company was changed to "additional information requested" from the company. Trading in Excelsior-Henderson Motorcycle Manufacturing Company had been halted on December 20, 1999, at 4:01 p.m. Eastern Time for News Pending at a last-sale price of 23/32. Trading will remain halted until the company has fully satisfied Nasdaq's request for additional information.