The Duncan Banner
The two Mike Terry Auto dealerships in Duncan, whose investors have waged a bitter legal feud, are on the selling block and could have its major assets sold in a public auction next month.
Stephens County District Court Judge Joe Enos, in an order issued this week, said without a timely sale of the assets, the dealerships could be forced to cease all operations.
Enos set Sept. 5 as the deadline for prospective buyers to submit bids, which must include “good faith” deposits of $300,000. He set the auction, if needed, for Sept. 9 in Oklahoma City.
Enos issued the order at the request of Michael Deeba, who Enos appointed as a receiver with full authority to take over and manage all major assets of the dealerships.
The judge appointed Deeba after an all-day court hearing on Aug. 12 in a dispute between Mike Terry and a group of five other investors who sought to oust him as manager of Mike Terry Chevrolet-Buick-GMC on U.S. Highway 81 and Mike Terry Chrysler-Dodge-Jeep-Ram at the Duncan/Lawton Y.
Terry said he owned majority interest in the dealerships and the move to fire him was unlawful. The others accused Terry of mismanaging finances, spending tens of thousands of dollars in dealership money on personal items and trips and putting the dealerships in jeopardy.
Enos appointed the receiver in hopes of rescuing the dealerships, which he said were important to employees and the community.
The order says selling the major assets was in the best interest of the companies and their creditors, and it should be done on an emergency basis for the following reasons:
n Ally Financial Inc., the secured lender for the dealerships, has served a notice of default and Deeba was unable to “presently cure the monetary defaults.”
n The receiver cannot pay all current operating expenses on a current basis, and while efforts are being made to reduce expenses, the situation will continue.
n Without a timely sale of the assets, the receiver would have to cease all business operations. That would have a negative effect on the companies, its employees and creditors.
The order said bids must be received by Deeba by 5 p.m. on Sept. 5 and no partial bids will be considered. Bids must meet various financial criteria and Deeba can decide if they do.
A baseline bid is to be determined by Sept. 6 and a public auction would be held at 10 a.m. on Sept. 9. Enos’ court will retain jurisdiction over any matter arising from his order.
The five investors who sought to oust Terry are Vahid Salalati, Roger Ely, Greg Luster, Ty Hartwig and Richard Horton.
It is not clear precisely how much the dealerships are worth, but an attorney for some of those investors said earlier that his clients could be out more than $4 million if Terry was allowed to maintain control and “run this into a ditch.”
Terry said on Aug. 12 that he simply wants to do the right thing, especially for the dealership employees.