EASYRIDERS' ROAD GETS BUMPY BIKER PUBLISHER SHIFTS GEARS, SEEKS TO REORGANIZE UNDER CHAPTER 11 BANKRUPTCY RULES.

Byline: Evan Pondel Staff Writer

AGOURA HILLS - Easyriders Inc. skidded into bankruptcy Wednesday, seeking Chapter 11 protection from its primary lender, Nomura Holding America Inc., which claims it's owed more than $21 million from the biker publisher.

But, Bob Fabregas, president and chief executive officer of Easyriders, isn't ready to squeeze the brakes on the company's operations.

The publisher's flagship magazine, Easyriders, has more than 120,000 subscribers who flip through pages of the full-throttle glossy depicting tattooed bikers, shiny chrome and scantily clad women.

``It's still business as usual,'' he said. ``And I'm looking at a 90- to 120-day window period in which we can be in and out of this thing very fast.''

Fabregas said the money Nomura is demanding stems from the purchase of Easyriders' wholly owned subsidiary, Paisano Companies, almost three years ago.

Easyriders bought the company from Joe Teresi, the current chairman of the publishing company.

``I express regret to our creditors that we were forced to take this action ... in the long run I expect the company to have much more rational capital and debt structure,'' Teresi said in a statement.

According to Fabregas, the reins were tightened on Easyriders' loan after ``individuals that had no corporate banking experience'' at Nomura began working with the company.

Nomura said it can't confirm or deny Easyriders' allegations.

Easyriders filed a preliminary petition with the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California.

Known as the reorganization chapter, Chapter 11 allows corporations to reorganize without liquidating all of their assets, the court said.

As a result, Easyriders will present a plan to Nomura which, if accepted by the lender and approved by the court, would allow the company to reorganize financial or business affairs, and again become a financially productive business, Fabregas said.

Despite the company's financial quandary with Nomura, its first quarter saw revenues of $8.3 million, compared with $8.4 million in the same period a year ago.

The company also generated a net income of $900,000, or 3 cents a share, versus a net loss of $1.4 million, or 6 cents a share, a year ago.

Easyriders said in the first quarter of 2001 it had positive earnings, with cash flow of $2.3 million, an increase from the $500,000 reported for the same period in 2000.

``And now we're taking some pre-emptive steps that are in the best interest of our shareholders,'' Fabregas said.

While Easyriders attempts to mend its financial issues, customers remain satisfied with the company's products.

Micah McCloskey is the owner of a motorcycle maintenance shop in Canoga Park.

McCloskey said he not only reads Easyriders, he sells the company's clothing line at his store.

``I like the magazine because you get a little more ink with more stories and more pictures,'' he said. ``And their clothing is usually good quality. They've been real good to work with.''

As of Wednesday's close on the American Stock Exchange, Easyriders rose 3 cents, or 7.50 percent, to 43 cents.

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(1 -- 4 -- color) no caption (Easyrider magazine cover and pages from magazine)