Another Successful Receivership Sale

Published on February 7, 2017

Receivership Auto Dealership Northern California

A car dealership that isn’t open for business is a big problem for the dealership’s lender.  Every day, the bank’s collateral is guaranteed to decline in value.  When our bank-client faced this dilemma in Northern California, we recovered 70% of the bank’s outstanding balance despite a convoluted process of receivership and bankruptcy filings.

Receiver BK Monitor → Receiver

The auto dealership had defaulted on its floorplan loan, causing its bank to commence a collection action. The court appointed Stapleton as receiver to take possession and monetize the auto dealer’s assets for the best possible recovery for the secured lender.  We were eager to move fast to recoup as much as possible for the bank.

BUT, the company then filed Chapter 11 bankruptcy, so we became the cash collateral monitor.

THEN, the company converted to a chapter 7 bankruptcy and ceased operations.  The bankruptcy was dismissed and we resumed our role as receiver.

Let’s Make a Deal

We had three options:

  1. Sell the vehicles back to the manufacturer under its legal buyback obligation – a slow process.
  2. Hold a public auction – a slow process.
  3. Sell the vehicles to a private buyer – FASTEST option.

We strategically used options 1 and 2 to negotiate the best price possible under option 3.

Our client was extremely pleased to recover 70% of its outstanding balance.

CLICK HERE to learn more about how we overcame wide-ranging obstacles in achieving this excellent outcome

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