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Old 07-25-2011, 03:34 PM   #1
steve_biegler
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Default Mission Chrysler in San Antonio closed

http://www.woai.com/news/local/story...9PeuySouA.cspx

I guess the Market is still pretty tough out there. I really hate to see this stuff.
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Old 07-26-2011, 01:02 PM   #2
rd3311
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The operating expenses of this store had to be very high when looking at the building and inventory.

It appears he still had a big inventory, so he must have been on finance hold for a good period of time as well.

If the trades are not getting paid off, ALLY must have had a rep in the store or was doing the old CCC trick of the joint checking account to make sure the floored vehicles get paid off first.

Last edited by rd3311; 07-26-2011 at 01:04 PM.
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Old 08-01-2011, 04:50 PM   #3
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Originally Posted by steve_biegler View Post
I guess the Market is still pretty tough out there. I really hate to see this stuff.
Steve - Thanks for creating the thread.

I was surprised when I read the report - I thought the worst part of the storm had passed and any dealership that made it this far could survive until the economy fully recovered.

Here's a follow-up news report on Mission Chrysler Jeep Dodge - click here

It sounds like the owners have filed for a Chapter 11 reorganization and hope to sell the store to a dealer group out of Florida. The report also indicated that Mission Chrysler Jeep Dodge has been sued by their service contract provider demanding $500K for products that were sold but not funded.

In my limited experience, Chapter 11 reorganizations rarely work for dealerships - it will be interesting to see if Mission is able to recover or whether they ultimately file for Chapter 7 liquidation.
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Old 08-02-2011, 06:41 AM   #4
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Quote:
CorePointe Loan Holdings LLC filed suit against 35 North Property on July 20, alleging that it's owed almost $7.8 million for Mission Chrysler's land and the building that housed the dealership.

Quote:
DeVane said by phone Thursday that he had hoped to sell Mission Chrysler to a Florida group, but lender CorePointe objected to the sale.

And DeVane attributed the dealership's problems to his inability to obtain working-capital loans starting in 2009, after his primary lender, Chrysler Financial, folded.



Read more: http://www.mysanantonio.com/business...#ixzz1TsXBN0Jr

Read more: http://www.mysanantonio.com/business...#ixzz1TsWuAjYR

Corepointe is the new name for the Chrysler Financial remnants that were "not" purchased by TD Financial when they bought Chrysler Financial Services.

Good Luck on this one if Corepointe is not paid out in full upfront.
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Old 08-02-2011, 12:20 PM   #5
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Originally Posted by rd3311 View Post
Corepointe is the new name for the Chrysler Financial remnants that were "not" purchased by TD Financial when they bought Chrysler Financial Services.
Thanks for the information - I assumed TD bought all of the Chrysler Financial assets - I didn't realize they split-up the company. Does that mean that Cerberus controls CorePointe?

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Good Luck on this one if Corepointe is not paid out in full upfront.
I'd guess CorePointe doesn't prayer they'll be able to get out of this mess without a sizeable loss.
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Old 08-23-2011, 04:50 PM   #6
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Default Greenway Auto Group from Florida wants to buy the real estate

A recent report indicates the Greenway Auto Group from Florida is in negotiations to buy the real estate of the former Mission Chrysler in San Antonio, TX. For the full report - click here

It's not clear if the Greenway Auto Group plans to re-open the location as a Chrysler dealership or if they have other intentions for the facility.

It's my understanding that the corporation that owns the real estate has filed for Chapter 11 bankruptcy but the dealership has not. The dealership continues to generate complaints from customers who claim their trade vehicles have not been paid-off and their registration/titles have not been processed.

It will be interesting to see how this mess gets sorted out.
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Old 08-24-2011, 04:19 AM   #7
rd3311
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Does that mean that Cerberus controls CorePointe?
Yes Cerberus controls Corepointe..It is the holder of all the toxic real estate and capital loans that were made by Chrysler Financial and not accepted by Ally on the floorplan assumptions from Chrysler.

Greenway Auto has a huge Ford deal on the east side of Orlando, as well as a CDJR store next to the Ford gig.

Frankie Rodriguez (Greenway) is also the money man on 3 large Kia stores in the Orlando metro, as well as a large Hyundai store on the westside of town.

I would think the issue is how much "Corepointe" says that it is "owed", and what Frankie tells "Corepointe" what the property is now worth to him.

Last edited by rd3311; 08-24-2011 at 04:22 AM.
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Old 08-24-2011, 10:07 AM   #8
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Originally Posted by rd3311 View Post
Yes Cerberus controls Corepointe..It is the holder of all the toxic real estate and capital loans that were made by Chrysler Financial and not accepted by Ally on the floorplan assumptions from Chrysler.

Greenway Auto has a huge Ford deal on the east side of Orlando, as well as a CDJR store next to the Ford gig.

Frankie Rodriguez (Greenway) is also the money man on 3 large Kia stores in the Orlando metro, as well as a large Hyundai store on the westside of town.

I would think the issue is how much "Corepointe" says that it is "owed", and what Frankie tells "Corepointe" what the property is now worth to him.
Thanks for the update - it's interesting to learn that Cerberus still has some toxic assets leftover from Chrysler Financial.

Concerning the negotiations between Mr. Rodriguez and Corepoint, I'm betting that Mr. Rodriguez has the upper hand. There can't be too much demand for an empty Chrysler dealership in San Antonio.

As before, it will be interesting to watch how this mess gets sorted out and to see if the facility is re-opened as a Chrysler dealership or switched to another OEM.
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Old 09-08-2011, 09:20 AM   #9
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Default Mission Chrysler is back in the news

Here's the latest news report concerning Mission Chrysler - click here

One of the creditors asked the Federal Judge to dismiss Mission's Chapter 11 bankruptcy filing and allow the sale of the property. The judge agreed to dismiss the Chapter 11 filing. (Chapter 11 is a reorganization bankruptcy - I'm guessing the creditors argued that Mission Chrysler does not have a source of capital to reorganize and therefore the filing should be a Chapter 7 bankruptcy.)

It will be interesting to see how many of the creditors get paid-off once the property is sold. It appears many customers are hopeful they'll get what's owed to them but I'm betting they're near the end of the line as unsecured creditors.
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Old 09-27-2011, 03:38 PM   #10
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Default Dealership has reopened and they're addressing prior concerns

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It appears many customers are hopeful they'll get what's owed to them but I'm betting they're near the end of the line as unsecured creditors.
In this case, I'm happy to be wrong.

News reports indicate that the Greenway Auto Group has re-opened and re-named the dealership - the new name is San Antonio Dodge Chrysler Jeep. Here's a link to the report - click here

Even more impressive, the report indicates the new owners are addressing the concerns of prior customers - missed payoffs, title and lien issues, license and registration issues, etc.

While I'm not sure of the details I can't think of too many instances where the new owners of a dealership take on the liabilities of the former dealership.
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Old 09-28-2011, 04:51 AM   #11
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Even more impressive, the report indicates the new owners are addressing the concerns of prior customers - missed payoffs, title and lien issues, license and registration issues, etc.
They more than likely are providing the new phone number to call for these issues instead.
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Old 09-28-2011, 09:58 AM   #12
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They more than likely are providing the new phone number to call for these issues instead.
That's what I would have thought too, but the news report indicates customers are going to the new owners and getting major issues resolved. It's not like the new dealer is giving away a set of floor mats, based on the report they're making payoffs, paying title fees, etc.

Perhaps there's some agreement that was reached during the bankruptcy of the former dealership that sets aside funds for the new dealership to resolve customer problems? There has to be more to the story because I can't imagine a new owner wanting to address the liabilities of the former owner - who knows how deep that hole is?
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