Anne Burns, the trustee in charge of Tricolor Holdings, can operate some parts of the business to secure Tricolor’s assets and records, a judge has ruled. U.S. Bankruptcy Court for the Northern District of Texas Dallas Division Judge Michelle Larson approved a motion on Oct. 3 allowing Burns to minimally operate Tricolor until Jan. 9, […] The post Judge allows Tricolor trustee to operate business in limited capacity appeared first on Auto Finance News.| Auto Finance News
A federal investigation into subprime auto lender Tricolor Holdings was confirmed as court proceedings began last week. In a court hearing on Oct. 3, Tricolor’s lawyers confirmed that federal law enforcement and regulatory agencies are investigating the buy here, pay here dealer and subprime lender for alleged misconduct and alleged systemic fraud. Since Texas-based […] The post Podcast: Tricolor court proceedings begin, fraud investigation confirmed appeared first on Auto Finance ...| Auto Finance News
Lawyers for Tricolor Holdings’ trustee confirmed in a court hearing today that the subprime lender is under government investigation for misconduct and appears to have engaged in systemic fraud. The trustee overseeing the Chapter 7 bankruptcy proceedings for Tricolor is gearing up to work alongside government agencies investigating potential “pervasive fraud of rather extraordinary proportions,” […] The post ‘Pervasive fraud of rather extraordinary proportions’ seemingly found b...| Auto Finance News
Tricolor’s bond prices plummeted in the days following the subprime lender’s Chapter 7 bankruptcy filing, with little recovery since then in the riskiest tranches. A drop signals that investors see a sudden increase in risk of nonpayment and losses. Auto Finance News analyzed pricing across the bonds in Tricolor Auto’s asset-backed securitization (ABS) deals, […] The post Tricolor bond prices drop following Chapter 7 filing appeared first on Auto Finance News.| Auto Finance News
Tricolor Chief Executive and founder Daniel Chu is no longer affiliated with the subprime auto lender, multiple sources tell Auto Finance News. Chu owned 27.5% of the company ahead of the Chapter 7 bankruptcy, according to a Sept. 10 Kroll Bond Rating Agency report. More than 72% of the company was owned by a “large […] The post Tricolor CEO Daniel Chu out, sources say appeared first on Auto Finance News.| Auto Finance News
Subprime auto lender Arra Finance has secured an over $100 million line of warehouse financing from Goldman Sachs even as lenders are being more cautious. Arra Finance, which acquired Cresent Bank’s auto finance division and servicing rights to its $770 million auto portfolio last month, closed on the warehouse funding line in June, Arra Chief […] The post Exclusive: Arra Finance secures over $100M warehouse line from Goldman Sachs appeared first on Auto Finance News.| Auto Finance News
Tricolor Holdings’ new loan servicer, Vervent, is facing collateral usage restrictions and demands from creditors to reclaim their auto parts in wake of the subprime lender’s Chapter 7 bankruptcy. Lender TBK Bank filed a notice Sept. 29 stopping Tricolor’s trustee from the surcharge, sale or use of its collateral. TBK also “demand[s] adequate protection of […] The post TBK Bank objects to Tricolor servicers using its collateral appeared first on Auto Finance News.| Auto Finance News
Wilmington Trust, National Association, a subsidiary of M&T Bank, as trustee for Tricolor Auto, is responsible for facilitating payments and providing protection for noteholders, managing defaults and ensuring that transactions are processed correctly. WTNA on Sept. 20 announced its intent to resign as indenture trustee and custodian for Tricolor’s asset-backed securitization (ABS) transactions but will […] The post Tricolor trustee plagued by payment challenges, potential fraud app...| Auto Finance News
The estimated value of tens of thousands of Tricolor Auto vehicles reportedly missing following the company’s Chapter 7 bankruptcy and subsequent servicer transition is up to $1.1 billion. About 30,000 vehicles are estimated to be missing that are marked for repossession, a market source tells Auto Finance News. Tricolor had about 100,000 outstanding loans, according […] The post Missing Tricolor vehicles could be valued up to $1.1B appeared first on Auto Finance News.| Auto Finance News
Some of Wall Street’s most notable corporate trust providers are reportedly turning down offers to take over for Wilmington Trust as Tricolor’s securitization trustee. Wilmington Trust indicated on Sept. 20 that it would step down as Tricolor’s trustee. The trust agreement requires Wilmington to find a replacement trustee within 30 days. Without a replacement trust, […] The post Wall Street trustees said to shun Tricolor job appeared first on Auto Finance News.| Auto Finance News