Trustee Takes Reins at Glendora Car Dealers

A court-appointed trustee Thursday took control of two troubled Glendora car dealerships and affiliated companies that filed for bankruptcy protection last week.

U.S. Bankruptcy Judge William J. Lasarow appointed Irving Sulmeyer, a veteran bankruptcy expert recommended by the Office of the U.S. Trustee, to oversee the operations of Grand Motors, Grand Chevrolet, Grand Wilshire Finance Corp. and Grand Rizal, a real estate company.

Sulmeyer’s appointment came after dealership lawyers and representatives of the companies’ largest creditors failed to agree on a reorganization plan Wednesday night.

During a lengthy meeting, representatives of San Diego-based Imperial Savings & Loan offered to pay $1 million for Grand’s assets and assume control of the companies, said Lawrence A. Diamant, the Grand companies’ bankruptcy attorney. Imperial is owed $172 million in Grand Wilshire auto loans, at least $20 million of which officials have said may be uncollectible.

Diamant said he refused the offer as inadequate. Imperial, in turn, would not consider any reorganization plan suggested by the dealership.

Detailed Plans Required

Assistant U.S. Trustee Lawrence Jay Kraines said his office decided to seek the assignment of a trustee because the companies were “incapable of functioning as they are.”

Following that meeting, Diamant spoke to an angry crowd of about 500 Grand investors, who he estimated are owed between $30 and $50 million, at the Grand Motors showroom in Glendora.

Edward M. Wolkowitz, Diamant’s partner who represented the Grand companies at Thursday’s hearing, told the court that he couldn’t support or oppose Sulmeyer’s appointment because no company officials would take a position. “There really isn’t anyone in control,” he said.

Immediately after his appointment, Sulmeyer began meeting with company officers and employees to determine whether the dealerships could remain in business.

For the dealerships to remain in business, Sulmeyer will have to present a detailed reorganization plan to the state Department of Motor Vehicles, which suspended the dealerships’ licenses last week, accusing them of “fraud or deceit” and failing to meet financial obligations.

“They’re going to have to provide something that’s real solid that would rise above the charges to convince us,” DMV spokesman William Gengler said.

Eminiano (Jun) Reodica, who had founded all the Grand companies, has apparently left the country. Diamant said Wednesday he had no idea where Reodica is.

Times Staff Writers Jeffrey Miller and Craig Quintana contributed to this story.