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NORCROSS, GA, April 03, 2013 /24-7PressRelease/ -- The Knoxville bankruptcy attorneys, Clark & Washington, want to discuss the recent bankruptcy filing made by car manufacturer American Suzuki Motor Corporation. Known best for its motorcycles, the company simply did not have a solid market in the U.S. to continue selling cars and trucks. According to the bankruptcy attorneys in Knoxville, the firm owes anywhere from $100-500 million in liabilities to 1,000-5,000 creditors, a fact that led them to file for Chapter 11 bankruptcy in early November. Suzuki has acknowledged their shortcomings, but has stated they intend to restructure their operations in the U.S. They will now place more emphasis on making and selling their recreational vehicle lineup (motorcycles, ATVs and marine engines).
The Bankruptcy Attorneys in Knoxville Note ASMC's Plan
In December of 2012, it was announced that the courts granted ASMC $100 million in debtor-in-possession financing to facilitate their financial plan. The Knoxville bankruptcy attorneys also note the parent company, Suzuki Motor Corporation, granted ASMC a $45 million loan to help repay its mass of creditors. It may seem strange, but the business is only using 1/2 of the money it has received to restructure its operations; the other 1/2 is being used to purchase 2,500 vehicles that were manufactured by the parent company after the bankruptcy filing. As a means of profiting off its losses, ASMC included some perks with this inventory for buyers, including a 7 year warranty program and cash-back incentives. The Knoxville bankruptcy attorneys note that this is not unusual for large corporations that file bankruptcy; as a result of this program, vehicles sales for ASMC jumped 22% last month. All of the existing U.S. dealerships will be converted into service shops.
Clark & Washington have been practicing Knoxville bankruptcy law for three decades. If you are considering filing for bankruptcy, contact them at http://www.knoxvillebankruptcyattorney.com
About Clark & Washington:
Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.
For more information, visit http://www.knoxvillebankruptcyattorney.com
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