Inside Tricolor’s next hearings set for Nov. 17, 18

Two milestone court hearings for Tricolor Holdings next week will decide how its trustee can continue to use funds and will let creditors ask a Tricolor representative questions under oath. U.S. Bankruptcy Court of the Northern District of Texas Dallas Division hearings set for Nov. 17 and Nov. 18 will decide who continues to service and use Tricolor cash and see testimony from a Tricolor representative for the first time since the subprime lender filed for Chapter 7 bankruptcy protection on Sept. 10. Read more about Tricolor here. Hearing 1: Trustee, Vervent access Tricolor’s first hearing will finalize how trustee Anne Burns will be able to use Tricolor’s cash collateral, and whether Vervent will continue to work as backup servicer for Tricolor, according to court documents. Burns can operate Tricolor in a limited capacity until Jan. 9, 2026 , according to court documents. She can secure Tricolor’s assets, collect Tricolor debts, retain third parties and return customer vehicles not owned by debtors. However, she cannot originate loans or leases. Judge Michelle Larson also allowed Burns in an interim order to spend $275,000 of Tricolor’s cash to hire former staff and keep insurance on vehicles left on Tricolor’s lots . The $275,000 budget is primarily meant to pay for two months of AFCO Credit Crop. Insurance with the expectation that Vervent would move Tricolor’s 8,000 remaining vehicles left on dealer lots to auction locations, where they no longer require insurance. Representatives for Burns or Vervent are likely to provide updates on how many vehicles remain, and whether another month of insurance is required. Larson will also likely finalize how Burns will be able to use money and operate the business going forward, as representatives from JPMorgan Chase and Fifth Third Bank have asserted some cash and vehicles may not be the trustee’s to use. “We believe a lot of this cash and the vehicles on the lots may not be state property at all,” Nicholas Baker , a Simpson Thacher and Bartlett lawyer representing JPMorgan Chase, said during an Oct. 27 hearing. “Although we’re supportive of the entry of this order … going forward that may not be the case.” Rulings may also come on whether several landlords can receive relief from stay orders , which would let them sell or rent their possessions before the bankruptcy proceedings end. Hearing 2: 341 Meeting of the Creditors Tricolor’s Section 341 Meeting of Creditors will be held Nov. 18, after a previous extension , according to court documents. The meeting will allow creditors to ask questions of Tricolor representatives required to answer under oath. Larson will also hear several more requests for relief from stay, including by TBK Bank , which asked to receive all its collateral to help pay off the $60.7 million it is owed by Tricolor, according to court documents. Vervent is currently unable to sell or use TBK’s collateral , according to court documents.

Inside Tricolor’s next hearings set for Nov. 17, 18

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