Dealership in bankruptcy

Bankruptcy of the Weymouth Motors GM dealership has left a long list of unsecured creditors, the largest of which -- Irving Oil -- is owed over $89,000.

The total owed all creditors is more than $3 million.

The Halifax firm of Green Jain Wedlake Inc., was appointed March 23 as receiver to represent interests of the two secured creditors, General Motors Acceptance Corp., which is owed $2.75 million, and RCB Royal Bank, which is owed $150,000.

On April 4, a court ordered the six-decade-old car dealership into bankruptcy and the receiver became the trustee representing the interests of 137 unsecured creditors. The total owed those creditors is listed as $157,639.

The receiver took control of the property March 23 when it was appointed by GMAC, and will liquidate any assets of Weymouth Motors. Should the asset sale fail to pay what is owed to the secured creditors, the others will be given nothing.

If secured creditors are paid, the unsecured creditors—with a few priorities—will split any remaining funds on a pro rate basis. Bankruptcy legislation gives priority to landlords and back wages for employees.

Unlike some cases in Canada where auto repair shops closed with customers cars locked inside buildings—and treated as assets—there were no customers’ vehicles involved in the Weymouth Motors closure.

Also among the largest amounts owed unsecured creditors were: - Action Truck Caps, Bedford, $2,881 - Bluewave Energy, Weymouth, $1,603 - Digby Auto Supplies, Digby, $3,303 - Rafuse Equipment, Bridgewater, $1,889 - Shay Tire Ltd., Berwick, $7,512 - TRA Maritimes, Middleton, $3,684