Not a good situation at this dealership

[dayvedayve]

http://www.kfdm.com/news/request-335...creditors.html

His catch phrase was "It's true, it's really really true!"

I don't think the judge sees it that way.

[Dave McFly]

linky no worky :(

[Mark A Collier Sr]

Still doesn't work

[dayvedayve]

Try link again.

If no work here is the article

A U.S. bankruptcy judge says Mike Young has no one to blame for his situation but himself.

The Winnie car dealer filed for reorganization under Chapter 11 Bankruptcy law last week.

Young was in federal court in Beaumont Thursday seeking to use some of the cash frozen in his accounts to continue operating the dealership.

However, Federal Judge Bill Parker told Young that he had no confidence that Young could protect the money that is owed to his creditors.

Parker said he could not allow Young to violate the law and use creditors money to continue to finance his operation.

Chrysler Financial and G.M.A.C. officials say they have discovered that Young has not paid for a total of about $2 million dollars in vehicles he sold. Those were vehicles that Chrysler and G.M.A.C. had financed for him.

Chrysler Financial has $12 million dollars in unsold vehicles on Young's lot and G.M.A.C. has about $3 million dollars in vehicles at the dealership.

Young blamed most of the dealership's financial discrepancies on two former managers who he said ran the day to day operations of the dealership.

He told the court his accounting books were a 'disaster' and said he didn't learn that until recently. Young said he found out that his bank statement has not been balanced in a year.

Young conceded he should have been more diligent in supervising his managers. It was disclosed that one of the former managers earned $244,000 in 2008 and the other collected $177,000 that year.

Young said he also learned that in his managers final days they traded or sold an unusually large number of cars to other dealers. He said he wasn't sure what happened to the money the other dealers had paid for those vehicles. Young said under normal circumstances the dealership might trade about 10-15 vehicles to other dealers.

Young brought his current employees with him to court and said if he didn't get the money he was requesting he would not be able to pay them and they would probably quit. Young told the court the day after he filed for bankruptcy protection, a payroll was due and his wife wrote personal checks to employees totaling between $8000 and $9000. Young said he was hoping to be reimbursed by the dealership.

One matter that remains unclear is whether Mike Young will be able to pay off the trade-ins and tax, title and license fees of people who recently bought cars from him. He had been seeking about $200 thousand dollars to cover those costs.

Chrysler Financial Representative Don Middleton testified while monitoring the dealership's practices he discovered a separate bank account and some 'creative accounting' involving large checks that appeared improper.

In his opinion, Judge Parker also said he believed Chrysler Financial and G.M.A.C should have been more willing to work with Young to resolve some of the problems because they themselves have benefited from government bailouts.

A final hearing on Young's petition for reorganization is set for August 28, 2009 in federal court in Tyler.

Jerry Jordan of The Examiner newspaper contributed to this report.

[wullger]

Don't worry, he'll get what's coming to him up here