Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, April 6, 1991 TAG: 9104060176
SECTION: BUSINESS PAGE: A-8 EDITION: METRO
SOURCE: GEORGE KEGLEY/ BUSINESS EDITOR
DATELINE: LENGTH: Medium
Richard Maxwell, an attorney for the dealership, told creditors at a Bankruptcy Court trustee's meeting the company expects to file a plan and a disclosure statement by the end of April.
Allred filed for bankruptcy protection in early March, the first major auto dealer in the Roanoke Valley to take that action since the hard times of the 1981-82 recession.
"We're looking at all options, selling the business as a going concern or seeking financing to reorganize," Maxwell said.
Allred said the company has about 125 cars and trucks available for sale but most of its used cars are on consignment. General Motors is not allowing the company to order any more vehicles, he said. General Motors Acceptance Corp., a financial firm, has a lien on the company's fixed assets, according to Maxwell.
Auto sales have been in a decline for months. The February total for the Roanoke Valley was down 30.3 percent from a year ago.
Allred said the company is trying to recover about $75,000 due from the manufacturer in rebates and factory payments.
At least three other valley auto dealers - Dominion Dodge, Burgland Chevrolet and First Team Inc., a Hyundai dealer - are among the creditors. George Pelton, president of the Hyundai dealer, wrote the court that he would be interested in buying the Chevrolet dealership.
Allred has reported debt of $3.1 million and assets of $2.8 million. A lawyer for HASI Partnership, the dealer's landlord, has asked for a court order requiring Allred to pay a rental bill of $19,250 a month or $231,000 a year.
Allred filed a projection of monthly net income of $10,000 to $11,000 and gross profit of about $143,000, after the cost of sales and before operating expenses, for the next six months.
Several creditors have claims for insurance payments. Allred said the company has a 50 percent fee on life insurance it sells.
Allred said he once had two partners and the company lent him money to buy out their estates "but I was unable to pay the money."
Crestar bank's claim for $51,920 is one of the largest on the creditor list.
Allred, a South Carolina native and a veteran of 15 years in the auto business, worked for a Greensboro dealer before he bought the Chevrolet dealership from Hayward Statum in 1982. The company moved to a new $1 million building on Virginia 419 near Interstate 81 in 1985.
Among other companies filing for protection in Bankruptcy Court:
Jack A. Winders, trading as Fisher Jewelers, asked for liquidation of his Towers Mall store. Winders, also filing individually, reported debt of $138,284 and assets of $120,002. He formerly operated a downtown Roanoke store.
Eric J. Sheffield of Roanoke County, doing business as Dream Street, a teen nightclub, filed for liquidation. He said his debt is $45,450 and his assets, $4,490. Roger L. and Judy S. Stevens of Vinton, formerly trading as Your Family Book Store, filed for liquidation, reporting debt of $88,100 and assets of $14,240.
Burke Mountain Trucking Inc. and three Western Virginia coal companies filed business petitions. The North Tazewell trucking firm, closed in September, listed debt of $999,304 and no assets in its request for reorganization.
Clover Mining Inc. of West Virginia and Little Bear Mining Inc., both North Tazewell companies headed by Larry Lough, also asked for reorganization. Clover said its debt is $825,544 and its assets, $300,900; Little Bear, reported debt of $852,828 and no assets. J & W Coal Inc., a Honaker business terminated in 1986, filed for liquidation, reporting debt of $129,077 and no assets.
by CNB