Out of Trust and Workouts

"Success consists of getting up just one more time than you fall." Oliver Goldsmith (1730-1774)

Our “Out of Trust / OT” experience encompasses almost forty years of consulting with lenders, dealers, attorneys and receivers with respect to workouts, recapitalizations and sales of troubled dealerships, both in bankruptcy and in receivership.

If your car dealership is upside-down or out of trust and you need advice on how to survive the situation, we have provided help to SOT and upside-down dealers hundreds of times and would be happy to consult with you, your lender, your attorney and your accountant with respect to analyzing your situation and recommending courses of action. Please feel free to contact us for a discussion of our fee schedule.

We have faced issues of double-flooring and a plethora of more complicated fraud cases both on the part of the dealers and dealership employees.

We have provided interim management while dealerships were being sold, both in cases of single-point dealerships and dealership groups.

As no two transactions are exactly alike, our broad experience enables us to adapt to complex situations where great damage could be caused by unskilled and less experienced consultants.

John Pico has served as the "Court Appointed Consultant to Debtor” in bankruptcy cases, the "Court Appointed Mediator" in automotive disputes, the "Court Appointed Arbitrator / Appraiser" in partnership disputes, the "Court Approved Consultant to Receiver" in a check-kiting case, as a "Superior Court Mediator" in dealership/lender litigation and has been recognized as an expert witness on both State and Federal levels throughout the United States. See: John Pico Publications & Certifications

Mr. Pico has consulted on upside-down positions of over $50 Million, out of trust positions of over $4 Million and a bank overdraft of $30 Million.

Mr. Pico authored the nation’s first book on Buying and Selling Automobile Dealerships.

See Buying and Selling Automobile Dealerships, Volume I, Chapter 22 Out of Trust and Workouts

See Buying and Selling Automobile Dealerships, Volume I, Chap 23 Consequences Of Being Out of Trust

See Buying and Selling Automobile Dealerships, Volume II, Form 312 Sample Collateral Protection and Set Aside Agreement

Other Out of Trust Articles Authored by John Pico:

Automobile Dealerships – Out of Trust – Tips for Dealers

Automobile Dealerships – Out of Trust – Tips for Lenders

Automobile Dealerships – Out of Trust – Keepers

Automobile Dealerships – Creating a Workout Plan

Death of an Automobile Dealership - Checklist

See too:

Sample Forbearance and Workout Agreement

Sample Loan Extension Agreement

Two other interesting articles are:

Car Title Disputes Arising Out of Sales Out of Trust, written by Richard Tomalinson and published in the Journal of Texas Consumer Law, at page 141; and

Out-of-trust dealership group can sue auditor, written by Eric Freedman, Automotive News, August 20, 2007.

Advising Automobile Dealers LLC
We Could Make the Difference