Euroclass, Autos Vega file for Ch. 11 protection
European car dealership Euroclass Motors and Autos Vega, the island’s largest Ford Dealership, filed for Chapter 11 bankruptcy protection Wednesday, News is my Business has learned.
While Euroclass listed about $16.6 million in liabilities, Autos Vega’s documents show $30.8 million in debt.
Euroclass Motors, which for more than 15 years has sold Volkswagen vehicles in Puerto Rico, lists as its top creditors Reliable Financial Services and Banco Santander, to which it owes nearly $1.8 million and $1.7 million, respectively. The dealer is also involved in a $7.7 million civil suit filed by Emilio Vega Marcia.
Meanwhile, Autos Vega, which sells a full line of pre-owned and new Ford vehicles, owes its biggest creditor, Reliable Financial. $13.6 million.
Chapter 11 bankruptcy filings allow the businesses to continue operating, as they work through their debt. In some cases, Chapter 11 can evolve into a Chapter 7 liquidation, if the affected company is unable to reach agreements with their creditors, or if their finances have no chance of improving.
EmilioVega is not the lawsuit that Autos Vega lost. It is from Euroclass management for 4.4 million. That was the reason it cracked!