Manchester files Chapter 11 bankruptcy to clear up creditor disputes

By Caroline Salls

Pittsburgh, Feb. 11 - Manchester Inc. filed Chapter 11 bankruptcy Thursday in the U.S. Bankruptcy Court for the Northern District of Texas to resolve ongoing disputes with its senior secured creditor.

Manchester said in a company news release that it expects to continue operating its business as normal, and it does not expect to have to lay off any employees in connection with the bankruptcy filing.

"The purpose of this bankruptcy is simple - to resolve ongoing disputes that have hampered Manchester's ability to conduct its operations," newly appointed president and chief executive officer Rick D. Gaines said in the release.

"We have every intention of emerging from the protection of the Federal Bankruptcy Code with all Manchester's creditors paid in full and its shareholders' equity interest in Manchester preserved."

According to the bankruptcy petition, Manchester had $131.58 million in assets and $123.88 million in debt as of Aug. 31.

The company did not list any unsecured creditors with claims of $1 million or more.

Manchester is a Dallas-based auto dealership that sells and finances used cars to buyers with limited credit histories or past credit problems. Its Chapter 11 case number is 08-30703.

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