Five or six deals to buy closed Bill Heard Enterprises Inc. dealerships are being negotiated, including deals for two stores in Las Vegas, Heard Enterprises attorney Robert Rubin said today.
Rubin spoke during a hearing at U.S. Bankruptcy Court in Decatur, Ala. The dealership group, formerly the worlds top seller of Chevrolets, is peddling its 14 stores after declaring bankruptcy Sept. 28. No final sale agreements were presented at the hearing.
Rubin also noted substantial interest in one Georgia store. Turnaround consultant Fred Caruso, of Development Specialists Inc. in Chicago, is spending today at the dealership groups headquarters in Columbus, Ga., to negotiate sales, Rubin said.
These are good deals, and we had several other offers that were not good deals, he said.
Also during the hearing, floorplan lender GMAC LLC received court permission to claim any vehicle inventory not needed for the marketing and sale of dealerships. GMAC plans to remove many used and 2008 new models from the lots of the 10 stores whose floorplans it financed, said Charles Tatelbaum, an attorney representing GMAC.
These vehicles depreciate very quickly between now and the end of the year, he told the court. Its to everyones benefit to liquidate them as soon as possible.
Tom Durant, whose six Detroit 3 dealerships include Classic Chevrolet in Grapevine, Texas, today confirmed he is offering a final purchase agreement for one of Heard Enterprises Florida stores. He declined to say which store.
If the dealership group confirms the sale of eight of the stores by the end of today, GMAC will give Heard Enterprises a $1.6 million advance for employees medical expenses.
Bankruptcy documents say Heard Enterprises must sell all its General Motors dealerships by Oct. 20, or it will lose its dealership sales and service agreement with GM for each remaining store. But that deadline can be extended, Rubin told the court: October 20 is sort of a target date.