Dixie Chrysler Ltd., Receivership

Dixie Chrysler Ltd., a Brampton, Ontario car dealership, was placed into receivership on March 18 on application by RBC, owed approximately $10.5 million.

Dixie Chrysler operates a Chrysler, Jeep, Dodge, RAM Truck, and other used vehicle showroom and sales office, also providing car service, repair work and auto parts.

The relationship between RBC and Dixie Chrysler has deteriorated, and RBC has no confidence in management’s ability to sustain the business as a going concern. The company has defaulted on its credit agreement with RBC, including by declaring dividends when it had negative net income, and by failing to remit approximately $1.35 million from the sale of its vehicle inventory that was financed by RBC and instead using the funds for other purposes.

Zeifmans is the receiver and Albert Gelman is financial advisor to Dixie Chrysler.

Counsel is Aird & Berlis for the receiver and Capstone Legal for Dixie Chrysler.