Ally listed as Suzuki's biggest unsecured creditor
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Ally Financial Inc., American Suzuki Motor Corp.'s preferred lender in the United States, was one of Suzuki's biggest creditors when the automaker filed for Chapter 11 bankruptcy protection this week.
AmericanSuzuki owes American Suzuki Financial Services $891,000, according to court documents. American Suzuki Financial Services is the name for Ally's private-label captive finance services, which Ally provided for American Suzuki and its dealers.
Ally is Suzuki's biggest unsecured creditor, meaning the debt is not backed up by specific collateral such as a lien or a mortgage would be.
Ally Financial says its taking appropriate steps to protect its interests during Suzuki's reorganization.
"We continue to monitor the situation diligently and we are communicating with American Suzuki and dealers as appropriate," Ally spokeswoman Gina Proia said.
"Ally continues to service Suzuki customers who have existing accounts with us, and the chapter 11 filing does not affect current consumer obligations."
Suzuki signed up with Ally's predecessor company starting in 2003. Initially, the relationship was with Nuvell Financial Services, the subprime auto loan subsidiary of the former GMAC Financial Services, now Ally.
Suzuki's second-biggest unsecured creditor, according to a list of the top 30 unsecured creditors submitted in U.S. Bankruptcy court, is Sheffield Financial in Clemmons, N.C., which provides loans for motorcycles, ATVs and other power sports equipment.
According to Suzuki's bankruptcy filing, the company owes Sheffield about $842,000. Sheffield is a subsidiary of BB&T Financial, which is affiliated with Branch Banking and Trust Co., a big regional bank and a major auto lender based in Winston-Salem, N.C.
Together, the 30 biggest unsecured creditors represent about $3.2 million in debt.
You can reach Jim Henry at autonews@crain.com.
