Tricolor Trustee Targets 100,000 Auto Loans Stuck in Limbo (1)

The trustee overseeing bankrupt Tricolor Holdings is seeking control of roughly 100,000 subprime auto loans originated by the lender, looking to hold them under court supervision while determining how to distribute proceeds to creditors.

Tricolor filed for bankruptcy on Sept. 10 with plans to liquidate following allegations of fraud. Speaking at the company’s first court hearing on Thursday, trustee attorney Charles Gibbs said it took nearly a week to get into Tricolor’s headquarters, while lawyers are still working to gain full access to the business.

The sudden collapse of Tricolor, which focused on lending to individuals with little to no ...