April 21, 2009 - PLAINVIEW, NY.
Leonard A Bellavia and John G. Gentile of Bellavia Gentile and Associates presented to the newly formed Long Island Franchised Dealer Association (www.LIFDA.com) on important topics facing Long Island's car dealers in these unprecedented economic times. The attorneys have presented similar crisis-focused round table meetings in Albany, NY, Dallas, TX, and New Haven, CT. A conference for Florida dealers is planned for May, 2009.
LIFDA President (Pro Tempore) Vincent Maiello said "The meeting was great. The dealers in attendance asked pointed questions and the panel addressed each and every concern in the room. The seriousness of this session reflected the crisis our member dealers are facing, and Len and John did a great job discussing strategies to help them through these unprecedented times."
The following topics were covered:
FLOOR PLAN LENDING
• Current state of industry
• Captive finance companies
• Independent banks (Sovereign, Chase, TD)
UNREASONABLE LENDER DEMANDS
• Personal guaranties
• Capital infusions
• CMA Deposits
• Pay down of credit lines
• Curtailments
• Interest rate spikes
FLOOR PLAN TERMINATIONS
• How to negotiate extensions
• Legal remedies to prevent or delay terminations
MANUFACTURER BANKRUPTCIES
• Implications for dealers
• Steps dealers should take to plan ahead
• Dealer CMA and Open Accounts
• Dealership chapter 11’s to preempt factory
termination
• Factories’ right to terminate dealers in Chapter 11
and defenses thereto
IMPORT DEALERS
• Is emergence of a “Good GM” from Chapter 11 a
threat to imports?
• Why many import dealers are in worse position than
domestic dealers
• Why inaction is not an option for any import dealer
• Hidden opportunities amidst the chaos
