The reason's Saleen's doors are still open are:
1) Saleen collected approximately 63 customer deposits valued at $1.7M and has
spent all but $21K on Payroll & SG&A expenses. So the 22 remaining employees are still getting paid.
Saleen has enough inventory to build a maximum of 9 cars if all the inventory matches up evenly
which is not likely. Some of that inventory is old and some is from 2014 models.
54 customer's are not likely to ever see their cars or their deposits back
2) The IRS has yet to begin repossession process for back due $745K delinquent payroll taxes
3) Citizens Bank is attempting to collect $369K loan but has yet started to repossess their
collateral (AR, Inventory & Equipment)
4) Ford of Escondido is trying to collect their $222K for seven chassis that were not paid for by Saleen.
They have not yet secured a court order to seize assets.
5) Saleen's vendors are owed 1,204,840 of accounts payable was greater than 90 days past due;
and they have yet to meet at the court house to sue Saleen for their delinquent past due balances
6) Saleen is 6 months past due on the rent $288,900 and the landlord has yet to begin eviction notice
7) MSY TRADING = $68,950 SSC is a defendant in a case filed by MSY Trading, Inc. on
April 13, 2012 in the California Superior Riverside County
8) Green Global Automotive B.V. (“GGA”)= $50,000 + Legal Fees needs a court order to collect
9) Bonds and notes = $97,000 1,204,840 of accounts payable was greater than 90 days past due;
10) Note payable = $61,046 issued on March 16, 2010 due in full on March 16, 2011. The note is
secured by three vehicles held in inventory The note was in default as of March 31, 2015
due to non-payment. Need a court order to collect collateral
11) Saleen does not have Workmans Compensation, General Liability or
Product Liability insurance. Big problem.
12) Saleen has no funding to support any warranty claims on the cars previously sold
13) Saleen is still spending an average of ($703K) more per month than it's revenue
With all these creditors and claims the small amount of Saleen assets may be sold off at auction
and the crumbs collected will be all the recovery available.
I cannot imagine this many creditors holding off much longer.
Even if bankruptcy court does not close Saleen's doors, you have to wonder how Saleen can continue to make payroll every week? The public is at risk the longer Saleen is allowed to stay open. How many more unknowing customers are going to put deposits down? These comments are my opinion, invest based on your own research and conclusions.
These comments are my opinion. Invest based on your own research and conclusions.
