HELENA – A federal judge ruled earlier this month that a creditor for Robert Allen Nissan in Helena can repossess 90 vehicles from the dealership.
Nissan Motor Acceptance Corporation (NMAC) filed a complaint alleging Robert Allen Nissan breached its agreement with the company in February. NMAC provides loans to dealerships allowing them to purchase cars and trucks to be sold on the car lot.
Under the agreement, the dealership must repay the loans within a set period following a car or truck’s sale.
NMAC said an audit of the dealership on January 10 found Robert Allen Nissan failed to make timely payments for 19 sold vehicles valued at more than $539,000. Court records state a second audit at the end of January showed an additional six vehicles had been sold bringing the total owed to nearly $800,000.
In court filings, NMAC requested Robert Allen Nissan repay outstanding balances on all loans and agreements. The value of those loans totaled more than $6.7 million, including interest.
In a July 2 order, the court found NMAC had the right to seize its collateral from the Robert Allen Nissan dealership in Helena. That collateral includes 90 vehicles valued at $2.8 million and money from deposit accounts.
Robert Allen Nissan is also barred from issuing checks or removing cash from accounts except to make payments to NMAC.
However, both parties have asked the court to allow the dealership to pay employees wages they are owed for the pay period ending on July 15.
Editor’s Note: Robert Allen Nissan is a client of the Montana Television Network.
-Reported by Eric Jochim/MTN News