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Saturday, October 31, 2009

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Former Hecker dealership in Baxter in limbo

Associated Press

The fate of a Baxter dealership once run by bankrupt auto magnate Denny Hecker was uncertain after a judge rejected an agreement to sell its assets to a Twin Cities auto dealer.

The Toyota/Scion dealership closed and its 35 employees were laid off in September. Toyota Motor Sales USA Inc. had planned to sell cars, parts and other non-land assets to Paul Walser for about $3 million, but U.S. Bankruptcy Judge Robert Kressel rejected the agreement on Wednesday.

Kressel's ruling came after he learned that the federal bankruptcy trustee was mostly left out of negotiations between Hecker and Walser until late in the deal. He also questioned a $750,000 consulting fee Walser had agreed to pay Hecker.

Toyota spokesman John McCandless says the company is considering its options for the dealership.

Hecker owned 26 dealerships before filing bankruptcy in June. The Baxter operation on Highway 371 is the last one to be disposed of.

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