Court set to OK sale of Prebul Infiniti

Court set to OK sale of Prebul Infiniti

June 25th, 2009 by Matt Wilson in News

The sale of Prebul Infiniti to a Chattanooga auto dealer who already owns six franchises should take place soon, a judge said Wednesday.

When U.S. bankruptcy trustee Jerrold Farinash files paperwork today to sell Prebul Infiniti to Tim Kelly, Bankruptcy Court Judge John C. Cook said, he'll approve it.

Mr. Kelly owns Cadillac, GMC, Saab, Hummer, Mitsubishi and Subaru dealerships in Chattanooga.

The Infiniti dealership formerly was owned by Joseph Prebul, who filed for bankruptcy protection on his six dealerships in Tennessee and North Georgia the day after he was charged with 11 counts of federal wire fraud in February.

Mr. Kelly said there still are some details to work out with Infiniti, but Mr. Farinash told the judge that Mr. Kelly "is as approved as he can be before the court approves him for bankruptcy purposes."

Chattanooga car dealer Nelson Long was in line to buy the Infiniti dealership for $275,000, but Infiniti did not approve the transaction, Mr. Farinash said. Mr. Kelly offered to buy the dealership for the same price Mr. Long would have paid.

Mr. Long will buy Mr. Prebul's Volvo franchise, however, for $225,000.

Earlier this month, Mr. Farinash signed the paperwork to transfer the rights to sell Kias in Dalton, Ga., from Mr. Prebul to Johnny Pye.

Nelson Bowers of Bowers Transportation will pay $300,000 for the rights to sell Kias in Chattanooga.