American Suzuki Motor Corp. filed for Chapter 11 bankruptcy last week and said that it will cease selling automobiles in the U.S. as part of a plan to restructure its business, according to the Associated Press.
The AP reports that in documents filed with the U.S. Bankruptcy Court in the Central District of California, the company estimated that its debts and liabilities range from at least $100 million to as much as $500 million.
The company is the only distributor of Suzuki vehicles in the continental U.S. According to the AP, the company has enough cash to operate during the restructuring and intends to honor all car warranties and buyback agreements. The company said it will work with its car dealerships to help them transition into parts-and-service operations.
“Nothing changes, there just won’t be any new cars,” Chris Chermak, a Suzuki car dealer, told the AP. “We’re not going anywhere.”
Much like a Chapter 11 bankruptcy, Chapter 13 or Chapter 7 bankruptcies allow you to discharge debts like credit card debt and medical bills. Contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.
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