McDonagh Chrysler Jeep Inc.
, an auto dealer in East Brunswick, New Jersey, filed for Chapter 11 reorganization on Jan. 18 in Trenton, New Jersey.
The dealership owes $5.2 million to Ally Bank, which provides financing for the auto inventory. Allyís collateral is valued at $4.9 million, leaving a $200,000 deficiency, according to court papers.
Chrysler Financial Corp. has a $2.36 million first lien on the assets other than autos. There is little collateral, leaving Chrysler Financial with a $1.95 million unsecured claim, according to court papers.
Although TD Bank has a second lien, there is no value in the security interest, leaving the bank with a $6.12 million unsecured claim, a court filing says.
Assets are less than $10 million while debt exceeds $10 million, according to the petition.
The case is In re McDonagh Chrysler Jeep Inc., 11-11397, U.S. Bankruptcy Court, District of New Jersey (Trenton).