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Banks Must Lend To Ernie Haire Customers

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By MICHAEL SASSO

msasso@tampatrib.com

Published: January 7, 2009

TAMPA - Ernie Haire Ford caught a break Tuesday when a federal bankruptcy judge ordered several major banks to continue lending to the dealership's customers.

On Tuesday, Bankruptcy Judge Michael Williamson ruled that Bank of America, Chase Auto Finance, Huntington National Bank and Harris Bank could not stop doing business with Ernie Haire Ford and its customers simply because the dealership is under Chapter 11 protection.

Those four banks removed Ernie Haire from their dealer network after the dealership filed for Chapter 11 in November, which made it harder to find financing for prospective customers.

Attorneys for Ernie Haire urged the judge to force the banks to continue lending to auto customers as if the Chapter 11 filing never happened.

In his ruling, Williamson said it was an interesting legal question whether banks could be forced to do business with a dealership that filed for bankruptcy court protection. The banks' agreements with Ernie Haire appeared to give them great freedom to stop lending with short notice.

However, Williamson ultimately ruled the filing of a bankruptcy case alone isn't enough reason for the banks to cut off Ernie Haire.

During a court hearing Tuesday, the banks' attorneys never explained why the banks wanted to cut off the dealership. Ernie Haire's attorneys insisted the banks lend money to the dealership's customers.

Ernie Haire has about 175 employees. Its principal office is at 9545 N. Florida Ave. in Tampa. The Chapter 11 filing includes other Ernie Haire companies, such as Big Dog Motorcycles of Tampa, Ernie Haire Used Car Auto Mall, Ernie Haire Used Car Supercenter of Tampa, and a local Quick Lane Tire & Auto Center.

Reporter Michael Sasso can be reached at (813) 259-7865.

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