TOYOTA OF SIMI'S SALE OK'D : STAFF'S FUTURE UNCERTAIN, IN HANDS OF NEW OWNER.Byline: Terry Kanakri Daily News Staff Writer The sale of financially strapped strapped adj. Informal In financial need: We are strapped for cash right now. strapped Adjective strapped for Slang Toyota of Simi Valley Simi Valley (sē`mē, sĭm`ē), city (1990 pop. 100,217), Ventura co., SW Calif. in an oil, fruit, and farm region; laid out 1887, inc. 1969. has been approved in bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. , but the future of its employees is in limbo limbo In Roman Catholicism, a region between heaven and hell, the dwelling place of souls not condemned to punishment but deprived of the joy of existence with God in heaven. The concept probably developed in the Middle Ages. and will be decided by the new owner, officials said Wednesday. A.A.I.C. Inc., will pay between $4.2 million and $4.4 million to buy the First Street car dealership This article is about car dealerships. For the indie pop band, see Dealership (band). A car dealership or vehicle local distribution is a business that sells new cars and/or used cars at the retail level, based on a dealership contract with an automaker or , said attorney Gary Plotkin, who represents Toyota of Simi Valley and its owners Tom and Sam Barooni. However, the fate of approximately 45 employees is uncertain, Plotkin said. ``We're making every effort to stabilize the situation and encourage the buyer to rehire Re`hire´ v. t. 1. To hire again. these employees,'' he said. ``(The Baroonis) are very much concerned about the welfare of the employees. They're doing everything they can to generate enough cash to pay these employees and creditors.'' Attorney Sheri Bluebond, who represents A.A.I.C., was on vacation Wednesday, and could not be reached for comment. Toyota of Simi Valley filed for Chapter 11 bankruptcy in February in an effort to prevent losing assets to Toyota Motor Credit Corp., which claims the local car dealership owes it $4.2 million. The bankruptcy, filed in the Central District bankruptcy court in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , put an end to a court order that prevented the dealership from selling or disposing of cars. Although the dealership later reopened for business, it has been closed for about two weeks under an agreement reached by all parties involved pending completion of the sale, Plotkin said. The sale has been approved and notification filed May 8 in the Central District bankruptcy court in Los Angeles, and is expected to be signed by a judge soon, officials said. The sale is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent A.A.I.C. obtaining financing, and getting approval to become a dealer from Toyota Motor Sales. Meanwhile employees who have not been paid since April 20 are hoping for a quick resolution, and many are struggling to make ends meet, said one worker. ``We're hoping the dealership will be open soon,'' said Melinda Hager, a warranty administrator who is a single parent raising two children. ``There's a lot of families involved in this and everybody is in the same position. They need that paycheck to survive, and there are people who are in a worse shape than I am because they have stuff that will be disconnected because they can't pay their bills.'' On Feb. 6, Toyota Motor Credit Corp., a subsidiary of Toyota Motor Sales USA, filed a civil lawsuit in Ventura Superior Court alleging Toyota of Simi Valley breached terms of an inventory loan and security agreement. Toyota Motor Credit Corp. officials said Toyota of Simi Valley failed to repay a loan issued to the dealership to buy new and used cars, as well as parts and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. . The company charged it also discovered financial irregularities with Toyota of Simi Valley, and performed a field audit which showed the dealership's financial statements were inaccurate and contained fictitious Based upon a fabrication or pretense. A fictitious name is an assumed name that differs from an individual's actual name. A fictitious action is a lawsuit brought not for the adjudication of an actual controversy between the parties but merely for the purpose of cash credit entries. Toyota Motor Credit Corp. hopes to recoup recoup To sell an asset at a price sufficient to recover the original outlay or to offset a previous loss. most of the money owed it following the sale of the dealership. Toyota of Simi Valley has denied the charges, and Plotkin contested the idea that the local dealership owes Toyota Motor Credit Corp. $4.2 million. ``We think their calculations are incorrect,'' he said. ``We think we haven't been given all the proper credit, and we think there's excessive legal and accounting charges.'' The financial dispute has made it difficult for the dealership to pay its employees, Plotkin said. ``Toyota Motor Credit is claiming all the money,'' he said. ``Until that's resolved, there's no money to pay the employees. We believe the employees should have been paid.'' Asked how long the employees may have to wait to get paid, Plotkin said he did not know. ``It all depends on how much cash is available after resolving the claim between the debtor and Toyota Motor Credit,'' he explained. |
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