Creditor claims may affect Lex Brodie sale
By Andrew Gomes
Advertiser Staff Writer
An effort to sell Lex Brodie's Tire Co. could be complicated by an involuntary bankruptcy petition filed last week by three creditors seeking claims against the O'ahu tire and gasoline retailer's former parent company.
The three creditors, all Mainland suppliers of Lex Brodie's, said they are owed $136,290. They hope to recoup their losses by forcing the retailer's former parent company, National Tire Co. of Hawaii Ltd., into Chapter 7 where a trustee would decide if they are entitled to any assets.
National Tire, headed by Tennessee businessman John Mayo, lost Lex Brodie's in April to Arizona-based lender Finova Group Inc., which acquired most of National Tire's assets (four Lex Brodie's stations) but none of its debts in a nonjudicial foreclosure for about $1 million.
The creditors suspect that Finova may have acquired some assets, specifically real estate leases, to which they have a right, according to Elizabeth Kane, a Honolulu attorney who filed the bankruptcy petition on behalf of China Manufacturers Alliance of California, GWT LLC of Alabama and New Products Inc. of Delaware.
"That will be up to a trustee to investigate and determine," she said.
Don Barrickman, a Finova vice president, said his company will be able to show it perfected its security interest in the leases and did not receive any equity in the business to which it is not entitled.
"I think it's just a bunch of frustrated creditors trying to see if there's anything available to them," he said. "We don't blame them ... but (the bankruptcy petition) doesn't affect us."
Kane and Barrickman said the petition is not expected to affect operation of Lex Brodie's four stations in Kaka'ako, Kalihi, Waipahu and Pearl City.
Finova has been operating the stations under a new corporation while it seeks a buyer for the business. Barrickman said about 20 interested parties have looked at Lex Brodie's, and he expects to receive five to 10 offers by the end of the month.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
