Pro Golfer’s Firm Offers to Buy Car Lot
Golfer Arnold Palmer’s car company has a shot at owning Claremont Auto World, now under the supervision of a bankruptcy trustee, if the U.S. Bankruptcy Court approves the proposed sale.
Peggy Proestos, Claremont economic development director, said the city redevelopment agency has agreed to loan $750,000 to provide working capital for Arnold Palmer Automotive Group Holdings Inc., whose investors include Palmer.
Proestos said the loan agreement, which is being reviewed by attorneys for the agency and the buyer, includes a commitment by the Palmer firm to put up $750,000 of its own money and to repay the loan at 12% interest over 10 years.
Once the agreement has met the approval of attorneys, it will be submitted to bankruptcy trustee Jeffrey C. Coyne, who, Proestos said, has agreed to recommend Arnold Palmer Automotive Group to the bankruptcy court as a qualified buyer. Proestos said she could not disclose terms of the proposed purchase. Neither Coyne nor officials of the Arnold Palmer Automotive Group, which is based in Florida, could be reached for comment.
The success of the auto park, which included Cadillac, Pontiac, Acura and Hyandai dealerships, is vital to the city’s financial health because it provides about half of the city’s $2 million a year in sales tax revenue, Proestos said.
The auto park, which opened in 1986, ran into financial difficulties last year after it was acquired from its original owner by Joseph Wilson. General Electric Capital Corp. claimed Wilson had failed to meet payments on more than $20 million in loans from the corporation.
The auto business was forced into receivership in February. Wilson filed for reorganization under the federal bankruptcy laws in April, bringing the business under the control of a bankruptcy trustee.
Proestos said that although Palmer is among the new investors, the active participants will be James O’Neal, who is chairman of the Arnold Palmer Automotive Group, which operates 20 car dealerships in several states, and Don Massey, who heads Cadillac dealerships in Michigan and Colorado.
