Navigator Holdings Leverages Platform Towards Distressed Assets
While many car manufacturers and dealerships are struggling financially, Navigator Holdings (Navigator) is expanding. The growth of the company is in large part due to the company’s incorporation of other lenders’ distressed assets into the Navigator platform. Under the direction of Navigator President and turnaround expert Bobby Lazenby, the company has focused its turnaround group to create and execute workout scenarios for bank-owned, distressed assets.
Lazenby contributes the company’s growth to an understanding of the complexities of asset-based lending.
In March, Navigator leveraged their platform and created Navigator Re-Marketing Group to assume the remarketing of a $130 million Harley Davidson motorcycle portfolio. Navigator intends to resell repossessed motorcycles directly to the public at wholesale prices through www.bid4bikes.com. Navigator expects to reduce the portfolio loss severity, thereby increasing returns to the investors. Music to any investor’s ears these days.
Navigator recently assisted a hedge fund in the foreclosure and liquidation of a franchise dealer automobile floorplan, shipping the vehicles directly to the company’s eight dealerships and turning the vehicles into retail installment contracts for the benefit of the lender. Navigator is also providing custodial and loan servicing on the lender’s behalf.
According to Lazenby, “The marketplace is replete with broken deals; Navigator is an intelligent alternative to a straight liquidation at 2009 mark-to-market pricing.”
“In a time when financing for subprime consumers is scarce, Navigator has increased both credit quality and sales. We go to great lengths to understand our assets and the consumers we lend them to,” said Lazenby, a turnaround expert.
“Even if unemployment reaches 10 percent, that will mean 90 percent of the people still need transportation for work. When your focus is financing transportation vehicles, this model still works,” Lazenby continued. “While GMAC and Chrysler are facing insolvency and heading to Washington with hat in hand, Navigator has been busy redefining the used car business.”
Navigator Holdings owns and operates eight independent automobile dealerships, Navigator Dealer Group LLC, and a captive finance company, Navigator Acceptance LLC. Navigator dealerships specialize in selling transportation and utility vehicles. In addition to selling cars, Navigator Acceptance specializes in providing financing directly to those consumers with other than prime credit.
