American Suzuki Motor Corp., the bankrupt U.S. distributor of Suzuki cars and motorcycles, won interim court approval Wednesday to borrow as much as $45 million as it shuts auto dealerships and revamps motorcycle and boat sales.
The company’s parent, Suzuki Motor Corp., will loan the distributor money at a below-market interest rate of 3 percent above Libor, Debra Grassgreen, an American Suzuki lawyer, said in federal court in Santa Ana, Calif.
Suzuki Motor Corp. will try to avoid long court battles with its 216 dealers by offering cash payments within 10 days if they voluntarily scrap their franchise agreements. Various state laws normally protect dealers when auto manufacturers try to force them to shut down, Richard Pachulski, another American Suzuki lawyer, said in court.
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