Avanti Motor filed for protection from its creditors.
The South Bend, Ind., company, the nation’s smallest production car company, listed assets of $4.7 million and liabilities of $6.68 million as it filed under Chapter 11 of federal bankruptcy law. Avanti had attempted unsuccessfully to renegotiate a $3-million bank loan and faced legal action from numerous creditors, including banks and suppliers. Avanti owes $3 million to its largest creditor, First Source Bank of South Bend. The bank briefly seized control of Avanti’s assets in January, claiming the company had fallen behind on loan payments.