By Brenda L. Showalter
The Republic
John Hubler Nissan-Suzuki Inc. of Columbus filed for Chapter 11 bankruptcy Monday in U.S. Bankruptcy Court Southern District of Indiana.
Hubler’s attorney, Gary Hostetler of Indianapolis, included a “certificate of emergency” stating that Hubler’s assets were about to be seized.
Earlier on Monday, Bartholomew Superior Court 1 Judge Chris Monroe signed an order for the Columbus dealership to turn over its vehicle inventory and signs to its supplier.
The order included 185 vehicles valued at $3.6 million.
Nissan Motor Acceptance Corp. claimed that the Hubler Columbus dealership owed it $4.9 million in inventory, equipment and other assets for not abiding by terms of a wholesale agreement the two parties signed.
The bankruptcy filing, however, puts the NMAC claim on hold.
According to bankruptcy court records, “the bankruptcy case automatically stays certain actions against the debtor and the debtor’s property.
“If you attempt to collect a debt or take other action in violation of the bankruptcy code, you may be penalized,” states the document, signed by John A. O’Neal, clerk in U.S. Bankruptcy Court.
Hostetler could not be reached for comment, and representatives at the Columbus dealership declined comment on Monday.
NMAC spokesman Steve Parrett said he could not comment while the matter is pending in the courts.
Court records also showed that Hubler’s attorneys failed to file certain documents, and the bankruptcy will be dismissed if they are not filed by Jan. 4.
Not included were a statement of financial affairs and a list of Hubler’s largest unsecured creditors.
Monroe’s order to seize Hubler’s vehicles followed a hearing on Friday where Hubler, his Columbus executive manager and his accountant testified.
Hubler testified that he was led to believe he had reached a forbearance agreement with Nissan Motor Acceptance Corp. in early December.
Hubler said he had made payments to NMAC after selling a Florida property and thought he had more time to get other financial matters in order at the Columbus dealership.
The business moved from National Road to Jonathan Moore Pike in August when it expanded its inventory and renovated the building formerly occupied by a Mexican restaurant.
Monroe wrote in his order that a forbearance agreement had not been signed by Hubler and NMAC.
The judge also determined that NMAC was entitled to “take possession and sell, lease or dispose” of signage and vehicles at the Columbus business in accordance with a wholesale financing and security agreement signed by Hubler and NMAC two years ago.
Hubler’s attorney for the NMAC complaint, Dennis McCrosson, did not return calls from The Republic.
McCrosson argued at Friday’s hearing that Hubler believed that finances were being worked out when NMAC “pulled the rug out from under us.”
NMAC’s attorney, Cathy Chromulak, said no forebearance agreement had been signed and that Hubler had received letters warning him that NMAC planned to take possession of vehicles it had provided to Hubler to operate the dealership.
Sheriff’s deputies seized vehicles at the Columbus lot on Dec. 13 by placing stickers on windows stating that they were seized pursuant to court order.
NMAC’s attorneys claimed that because of the security agreement, it was entitled to seize Hubler’s property when he breached the contract.
Hubler is accused of owing NMAC $1.02 million for vehicles he sold “out of trust” in violation of the agreement.
NMAC provided vehicles to Hubler, and he was required to pay the supplier for them “on or before the close of the next business day following its sale to the retail customer,” NMAC’s complaint stated.
NMAC also complained Hubler breeched the agreement by “failing to maintain working capital and net cash at or above guidelines set by Nissan and calculated by NMAC” and for having a wholesale line of credit that exceeded the approved amount.
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