TBK Bank objects to Tricolor servicers using its collateral

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 their interests,” according to court documents. The notice leaves Vervent with less collection funds to transmit and use. Vervent was locked out of Irving, Texas-based Tricolor Holdings’ headquarters as of Sept. 16. Around 30,000 vehicles are estimated to be missing that are marked for repossession, a market source told AFN . Meanwhile, corporate trust providers are turning down offers to take over for Tricolor’s securitization trustee, Wilmington Trust . Read more: Wall Street trustees said to shun Tricolor job Hesselbein Tire Southwest, XL Parts demand auto parts back Two auto parts suppliers, San Antonio, Texas-based Hesselbein Tire Southwest and Hoston-based XL Parts , filed notice of reclamation demands Sept. 29, asking for the return of auto parts they sent Tricolor within the 45 days prior to its bankruptcy filing. Hesselbein Tire Southwest invoiced Tricolor for around 329 tires and XL Parts invoiced Tricolor for at least 8,252 parts in that time period, according to an Auto Finance News analysis of court documents. More creditors file appearances Several more of Tricolor’s 25,000 creditors filed motions to appear and receive notice of all hearings since Sept. 23, according to court documents, including: ACV Capital LLC ; Auto Paint Recon ; BMW Financial Services ; Bullish Resources Inc .; Ector County Appraisal District ; Hesselbein Tire Southwest, Inc.; Houston Auto Auction Properties ; Marina Realty Enterprises ; Roalty 1 Properties ; RKJS Investments LLC ; Salehoun Family Limited Partnership ; Offshore International, Inc ; and XL Parts. Offshore International declined to comment. All other creditors did not respond in time for publication. Dallas, Texas-based landlord Salehoun Family leased two locations to Tricolor for $57,875 in monthly rent, according to court documents. Tricolor stopped paying both leases starting Aug. 1 and filed bankruptcy before Salehoun could notify Tricolor of its default. Tricolor has “vacated and abandoned the premises” since its bankruptcy filing, according to court documents. Salehoun filed a relief from stay motion Sept. 26, asking the U.S. Bankruptcy Court for the Northern District of Texas Dallas Division to allow Salehoun to act on the property it leased to Tricolor. Court objections to Salehoun Family’s motion are due by Oct. 10.

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