JupiterSunsation
07-24-2009, 09:15 AM
What is this world coming to if you can't sell Porsches in FL!
Champion's plans to sell two Audi franchises in Broward opposed
8:25 AM EDT, July 24, 2009
FORT LAUDERDALE - Champion Motors wants to sell its Audi franchises in Coral Springs and Pompano Beach to a Chicago-area dealer for about $10 million as part of a plan to emerge from bankruptcy.
But Fort Lauderdale's AutoNation, which has offered to acquire the franchises for $11 million, and Audi of America both objected to the proposed deal at a bankruptcy court hearing Thursday. Audi of America is the U.S importer of Audi vehicles.
Champion, which filed for reorganization in May, asked the bankruptcy court to approve a contract to sell the franchises to dealer Edward F. Napleton, of Illinois. Champion intends to continue operating its Pompano Beach Porsche dealership, which it bills as the world's largest.
Under terms of the contract, Champion would be prohibited from either auctioning or shopping the Audi franchises for higher offers -- limitations not typically found in bankruptcy-court sanctioned sales.
"So someone could [come] in with a $20 million offer and under this contract you couldn't accept it?'' U.S. Bankruptcy Court Judge Raymond B. Ray said to Champion lawyer Bart Houston.
"That's correct,'' Houston replied.
Ray didn't immediately rule on the motion.
AutoNation lawyer William Spencer opposed the agreement, telling the judge it "stifles the bidding process.''
Audi of America lawyer Kimberly Robinson, who also opposed the agreement, said Napleton only intends to operate the Audi dealership in Coral Springs, at 5555 N. State Road 7. Champion will continue to run the Pompano Beach store as a Porsche dealership, she said, leaving Audi without a presence in Pompano Beach.
Champion has operated the Porsche and Audi franchises from the same location in Pompano Beach, at 500 W. Copans Road. Audi of America contends Champion ceased Audi's operations there last month.
But Napleton's lawyer, Arthur Neiwirth, said his client would operate both Audi franchises. State franchise laws permit a dealer to relocate within two miles of its current location without the consent of the manufacturer, he said in court. Napleton has at least seven franchises in Palm Beach County.
Champion, founded by owner Dave Maraj in 1988, listed assets of $56.2 million and liabilities of $51.3 million in court documents last month.
Houston, the Champion lawyer, blamed the bankruptcy on a weak economy and tighter credit terms implemented by the lender that finances Champion's vehicle inventory.
Champion's plans to sell two Audi franchises in Broward opposed
8:25 AM EDT, July 24, 2009
FORT LAUDERDALE - Champion Motors wants to sell its Audi franchises in Coral Springs and Pompano Beach to a Chicago-area dealer for about $10 million as part of a plan to emerge from bankruptcy.
But Fort Lauderdale's AutoNation, which has offered to acquire the franchises for $11 million, and Audi of America both objected to the proposed deal at a bankruptcy court hearing Thursday. Audi of America is the U.S importer of Audi vehicles.
Champion, which filed for reorganization in May, asked the bankruptcy court to approve a contract to sell the franchises to dealer Edward F. Napleton, of Illinois. Champion intends to continue operating its Pompano Beach Porsche dealership, which it bills as the world's largest.
Under terms of the contract, Champion would be prohibited from either auctioning or shopping the Audi franchises for higher offers -- limitations not typically found in bankruptcy-court sanctioned sales.
"So someone could [come] in with a $20 million offer and under this contract you couldn't accept it?'' U.S. Bankruptcy Court Judge Raymond B. Ray said to Champion lawyer Bart Houston.
"That's correct,'' Houston replied.
Ray didn't immediately rule on the motion.
AutoNation lawyer William Spencer opposed the agreement, telling the judge it "stifles the bidding process.''
Audi of America lawyer Kimberly Robinson, who also opposed the agreement, said Napleton only intends to operate the Audi dealership in Coral Springs, at 5555 N. State Road 7. Champion will continue to run the Pompano Beach store as a Porsche dealership, she said, leaving Audi without a presence in Pompano Beach.
Champion has operated the Porsche and Audi franchises from the same location in Pompano Beach, at 500 W. Copans Road. Audi of America contends Champion ceased Audi's operations there last month.
But Napleton's lawyer, Arthur Neiwirth, said his client would operate both Audi franchises. State franchise laws permit a dealer to relocate within two miles of its current location without the consent of the manufacturer, he said in court. Napleton has at least seven franchises in Palm Beach County.
Champion, founded by owner Dave Maraj in 1988, listed assets of $56.2 million and liabilities of $51.3 million in court documents last month.
Houston, the Champion lawyer, blamed the bankruptcy on a weak economy and tighter credit terms implemented by the lender that finances Champion's vehicle inventory.