Tricolor Creditors Seek Protections in Trustee Wind-Down Effort

Landlords and lenders for collapsed sub-prime auto lender Tricolor Holdings LLC said a bankruptcy trustee’s proposal to run the business for a few months should be tailored to pay valid claims and swiftly liquidate inventory.

Court-appointed trustee Anne Burns last week asked the US Bankruptcy Court for the Northern District of Texas for authority to operate the business for 195 days to locate business records, maintain assets and wind down the company’s administrative functions.

Any order granting the trustee operational control should explicitly provide lender collateral protections and make clear that her work doesn’t include running a retail business, lender ...