Industry Research

Debt Default Could Bankrupt Metro Cars

Posted on June 17, 2009 by LCT Staff - Also by this author - About the author

DETROIT — A bank says it is forcing the liquidation of much of the business empire of Grosse Pointe Farms businessman and Metro Cars founder Cullan Meathe after his companies allegedly defaulted on loans and interest totaling $45.3 million.

But an official at Detroit Metropolitan Airport — where Metro Cars holds a roughly $9 million a year parking shuttle contract and is set to resume control of the exclusive limousine contract on July 1 — said he understands the companies are reorganizing.

Airport spokesman Scott Wintner said he was told Lansing lobbyist Gregory Eaton, a Metro Cars partner, plans to buy out Meathe's interests and continue to operate the companies.

Airport management "is currently analyzing the legal aspects of Metro Cars' planned transactions to determine if it has any sort of impact" on the contracts, said Michael Conway, an airport spokesman.

The Bank of Montreal published a foreclosure notice in The Detroit News on Thursday saying it planned to sell the assets of Metro Group Holding Co. Inc., including Metro Cars Inc., Metro Coach LLC, Yellow Cab Service Corp. of Florida Inc., and other related companies, at a public auction in Chicago on June 25.

Meathe, who also signed a limited personal guarantee for the debt, can only stop the liquidation by paying the debt in full, plus the bank's costs, before the sale date, the notice said.

Telephone and e-mail messages left Friday for Meathe and his business attorney, Alan Shanaman of Bloomfield Hills, were not returned. Eaton could not be reached.

Meathe, a significant political donor to both former Detroit Mayor Kwame Kilpatrick and the late Wayne County Executive Edward H. McNamara, has business interests aside from his transportation companies in Michigan and Florida, including two companies involved in controversial public real estate deals in Detroit's Corktown area.

Meathe is also a principal investor in the redevelopment of the former Jacobson's department store in Grosse Pointe, again through a company that is not part of the Metro Cars group of companies.

Source: The Detroit News

View comments or post a comment on this story. (1 Comment)

More News

Did Trump Victory Bump Up Business Travel?

Any growth in late 2016 was a welcome surprise. Domestic business travel has a positive modest outlook because of more investment spending.

Small Businesses Most Optimistic Since 1980

The share of owners who say now is a good time to expand is three times the average during the recent expansion.

Business Travel Could Face Stiffer Challenges In 2017

Terrorism, Brexit, a China slowdown, rising oil prices, and immigration conflicts are weighing on the global travel market.

Corporate Travel Managers Reflect On Uncertain 2016

An annual report rounds-up the leading disruptions this year to the corporate travel sphere.

US Leisure Travel Growth Pace Slowing Into 2017

While it still leads the domestic market, the amount of forward-looking bookings and vacation intentions are lower.

See More News

Facebook Comments ()

Comments (1)

Post a Comment

Submit

Blogs

See More

See More

See More

See More

LCT Store

LCT Magazine - January 2017 $12.95 THE MONEY ISSUE COVER STORY: * Dashboard Helps Steer Company Finances * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close