By Brenda L. Showalter
The Republic
The attorney for John Hubler will ask a bankruptcy court judge to allow Hubler’s auto dealerships to continue operation and sell vehicles that previously were seized by court order.
An emergency hearing will be scheduled early next week in U.S. Bankruptcy Court Southern District of Indiana in Indianapolis.
Gary Hostetler, an Indianapolis attorney, filed Chapter 11 bankruptcy papers on Monday for Hubler’s three Indiana businesses:
• John Hubler Nissan-Suzuki on Jonathan Moore Pike.
• John Hubler Suzuki on West Pike Plaza in Indianapolis.
• Airstream of Indiana, a recreational vehicle dealership in Martinsville.
Hostetler said the Chapter 11 bankruptcy includes all three dealerships but does not involve other Hubler Indiana dealerships.
Following a complaint for payment made by Hubler’s supplier, Nissan Motor Acceptance Corp., sheriff’s deputies marked vehicles as being seized on Dec. 13.
The court order, signed by Bartholomew Superior Court 1 Judge Chris Monroe, included 185 new and used vehicles valued at $3.6 million.
Hostetler said the majority of the vehicles were at the Columbus dealership and some were at the Indianapolis Suzuki operation.
Nothing in Martinsville was seized, and all three dealerships remain open pending the outcome of the bankruptcy proceedings.
Chapter 11
“Chapter 11 gives us a forum to seek court permission to sell the cars,” Hostetler said.
Under Chapter 11, a debtor can continue his business operations but has to restructure his finances and develop a payment plan for creditors.
“It gives us time to come up with a plan to pay NMAC and other creditors,” Hostetler said.
He added that Hubler’s hope is to remain in business.
Hostetler filed only basic bankruptcy paperwork Monday that did not list specific creditors or amounts of assets and debts, since an emergency hearing was requested.
The bankruptcy papers, completed on a standard form, state only that Hubler has assets between $1 million and $10 million and debts of $1 million to $10 million.
The form also states that Hubler has between 100 and 199 creditors.
While the bankruptcy is pending, the order by Monroe to allow NMAC to repossess the 185 vehicles is on hold.
Still open
The Columbus dealership remains open and is allowed to continue selling vehicles that are not part of the court action.
The parts and service department also is open.
“We never shut down. We are fixing cars and honoring warranties,” said Steve Tummers, service manager at the Columbus dealership.
Tummers said he and other employees hope the matter can be resolved soon so the business can resume full operation.
“It’s an unfortunate situation to be put into, but we plan to fight our way out of it,” Tummers said.
Dave Barger, general manager of the Martinsville Airstream dealership, said his business is operating as normal.
“Nothing was seized here. We have absolutely no problems and are operating as usual,” Barger said.
The general manager of the Indianapolis Suzuki dealership could not be reached for comment Tuesday.
Portions © 2004, The Republic, Columbus, Indiana