The American Suzuki Motor Corp. has reached settlement agreements with 213 of its 219 automotive dealers nearly a month after the unit filed for bankruptcy, the New York Times reported yesterday. The agreements are intended to compensate dealers and smooth their transition from automobile sales to warranty-and-repair providers for hundreds of thousands of Suzuki owners. The process "makes the dealers whole and puts them at the head of the line in terms of getting paid" during reorganization, said Rachel Rosenblatt of FTI Consulting. The final deadline for agreements that cover dealers in the continental United States, which are subject to bankruptcy court approval, is Dec. 28. The automaker said that it is hopeful that it will be able to reach agreements with the remaining six dealerships. "Based on dealer acceptances, we continue to believe our restructuring and realignment will be completed in a timely manner," said M. Freddie Reiss of FTI Consulting, American Suzuki's chief restructuring officer. Suzuki plans to market and sell its remaining inventory of vehicles through its dealer network. Although low sales volumes caused its exit from the North American car market, Suzuki's sales in the United States were up 22 percent in November from a year ago. The company filed for chapter 11 bankruptcy protection on Nov. 5 in the U.S. Bankruptcy Court for the Central District of California, citing $346 million in debt.
