Dave Croft Motors files Chapter 11 bankruptcy
Dave Croft Motors filed for Chapter 11 bankruptcy protection Wednesday but plans to remain open as it attempts to reorganize.
In filings in U.S. District Court in East St. Louis, the Chrysler dealership said it owes more than $2 million to creditors, most of it to Chrysler Financial Corp. Other large creditors listed are Regions Bank and Dave "Crawford" Croft, with smaller amounts owed to media organizations.
The Collinsville dealership estimates it owes more than 50 creditors.
The company says it has assets in excess of that, and projects a positive cash flow for next month cash advance loans. But the dealership says it needs bankruptcy protection and permission to use cash collateral for some of its debts to pay operational expenses such as utility bills and employee wages "to avoid immediate and irreparable harm to (the company’s) business and cash flows."
The dealership’s owner could not be reached for comment.
Filed under: legal by Wolf