Jump to Navigation

As part of bankruptcy, Suzuki to stop selling cars in US

A Chapter 11 bankruptcy is specifically designed to reorganize the debts of a business. This often allows Tennessee businesses to continue operations, so long as they are able to meet their financial obligations during the bankruptcy process.

Readers in the Chattanooga area may be interested to hear that American Suzuki Motor Corp. announced on Nov. 5 that it will stop selling cars in the United States. This decision is part of a Chapter 11 bankruptcy plan that the company filed in a U.S. Bankruptcy Court in California. The filing estimated that the total liabilities of American Suzuki are between $100 and $500 million.

Representatives of the company said it will continue to operate during the bankruptcy process, allowing it to honor buyback agreements and car warranties. It was also added that the company will continue to sell other vehicles, including all-terrain vehicles and motorcycles, in the United States.

The announcement included an explanation that American Suzuki was getting out of the car business due to the cost of complying with U.S. regulations, poor sales and unfavorable currency exchange rates. The parent company, Suzuki Motor Corp., will buy the remaining car operations of its American subsidiary, which will retain its name after the bankruptcy reorganization.

The owner of a business in financial trouble should consider all legal options, including a Chapter 11 bankruptcy. A business is often in better financial condition when it exits a bankruptcy because its debts have been renegotiated or eliminated during the reorganization process.

Source: CBC News, "Bankrupt Suzuki to focus on motorbikes in U.S. market," Nov. 6, 2012

No Comments

Leave a comment
Comment Information

What's Your Situation:

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe to This Blog's Feed Visit Our Bankruptcy Website

Our Office Location:

Richard Banks & Associates

393 Broad Street, N.W.
Cleveland, TN 37364-1515
Map & Directions

Phone: (423) 244-0009
Toll Free: (866) 596-8527
Fax: (423) 478-1175

FindLaw Network

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.