CAR OUTLET AND TOTAL FINANCE

Case Highlights

• Orderly wind down of retail used car sales operations
• Transition collections of $115 million portfolio to a third-party servicer
• Coordinate sale of retail used cars
• Chapter 11 filing in Northern District of Illinois

Case Narrative

Car Outlet and its affiliate Total Finance is a subprime buy-here, pay-here used automobile sales and finance business targeting the Hispanic demographic in the Chicagoland and SE Wisconsin markets. DSI was retained as Chief Restructuring Officer concurrent with the Chapter 11 bankruptcy filing to effectuate an orderly wind down of the business and a transition of portfolio collections to a third-party servicer pursuant to a pre-negotiated Restructuring Support Agreement. The finance contract portfolio at the time of filing was approximately $115 million.

The bankruptcy filing was in the Northern District of Illinois Eastern division. The Debtors expect file a Plan of Reorganization that will provide for the distribution of proceeds from portfolio collections, asset sales, tax refunds and litigation proceeds to the various classes of creditors.