Jun 4, 2009 10:56 pm US/Central
Denny Hecker Files For Personal Bankruptcy
MINNEAPOLIS (AP) ―
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According to statement by the Twin Cities auto dealer, Hecker filed on Thursday to protect himself from more than $500 million in judgments against him and his various enterprises.
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After several months of closing or selling off his car dealerships, fallen auto magnate Denny Hecker filed for personal bankruptcy protection Thursday.
The Chapter 7 filing in U.S. Bankruptcy Court in Minneapolis means Hecker's personal assets will be turned over to a court-appointed trustee to prevent further losses. Hecker owes over $500 million to creditors who have won recent judgments against him and his businesses.
In the filing, Hecker lists assets of between $50 million and $100 million, and liabilities of between $500 million and $1 billion. He has between 200 and 999 creditors, though details are not listed.
Hecker, a longtime Wayzata resident, listed a Crosslake address in the filing.
The filing comes after Chrysler Financial, his longtime principal underwriter, demanded that he respond to a $477 million court judgment for nonpayment of business and personal debts. The default judgment was issued in Hennepin County District Court in April. In federal court, a judge ruled Ford Motor Co. was owed $3.15 million by Hecker's Stillwater Ford, Lincoln Mercury dealership.
"I am sad to say I was forced into personal bankruptcy protection," Hecker said in a written statement. "It is no secret these are unprecedented times in the automotive and travel industries. This once-in-a-lifetime economic storm has been painful to everyone in the Denny Hecker family of businesses."
Hecker also thanked his employees and customers for their support.
"For me, this is not the last chapter, it is part of life and turning the page," he said.
The 56-year-old was one of Minnesota's largest car dealers, but with the economic downturn, he has shuttered or sold 25 of his 26 dealerships. He has closed his Advantage Rent A Car and Walden and Rosedale leasing operations.
Hecker still has several multimillion-dollar real estate properties and interests in restaurants.
Hecker started selling used cars on Broadway and Lake streets out of Henry High School in 1970. In business, he was a larger-than-life personality and his face was everywhere -- newspaper ads, bus billboards and TV -- urging customers to visit his dealerships for good service.
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In the statement, Hecker said because of the all the efforts to resolve the litigation with Chrysler Financial he was forced to file for personal bankruptcy. He said the perfect storm of the bad economy and litigation led to his actions.
"It is no secret these are unprecedented times in the automotive and travel industries. This once-in-a-lifetime economic storm has been painful to everyone in the Denny Hecker family of businesses."
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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