According to The Street, Financial difficulties have compelled several major automotive companies to seek Chapter 11 bankruptcy protection this year.
Fisker Group, an electric vehicle manufacturer based in Manhattan Beach, California, became the first automaker to file for bankruptcy, submitting its Chapter 11 petition on June 18. The company attributed its financial challenges to various market and macroeconomic headwinds.
The auto parts sector has also faced significant challenges, with 20 German electric vehicle parts manufacturers declaring bankruptcy in the first half of 2024. In the U.S., Wheel Pros, which operates as the auto parts distributor and retailer Hoonigan, filed for prepackaged Chapter 11 bankruptcy on September 9. This move aims to eliminate $1.2 billion in debt while securing approximately $570 million in new capital through an exit facility.
Wheel Pros’ bankruptcy filing followed the December 2023 Chapter 11 petition by PartsID, an e-commerce retailer of auto parts.
Additionally, Stanley Oil & Lubricants, a distressed petroleum products company, filed for Chapter 11 protection on September 17 in the U.S. Bankruptcy Court for the Eastern District of New York. This filing came after a U.S. District Court judge granted a preliminary injunction against the company in a trademark and copyright infringement lawsuit, freezing certain assets and halting specific business operations.
The Melville, New York-based company listed assets of up to $50,000 and debts ranging from $1 million to $10 million in its bankruptcy petition, indicating that no funds would be available for unsecured creditors after covering administrative expenses.
Stanley Oil’s bankruptcy followed a preliminary injunction issued on September 11 by U.S. District Judge Nina R. Morrison in favor of General Petroleum GmbH, a manufacturer of automotive, industrial, and marine lubricants based in Frankfurt am Main, Germany. The injunction prohibited Stanley Oil from manufacturing, importing, distributing, or selling products using General Petroleum’s trademarks or any confusingly similar marks, freezing the debtor’s assets related to the alleged sale of goods bearing counterfeit marks.
The dispute began in August 2019 when Stanley Oil started doing business with General Petroleum, purchasing petroleum products from the company in Sharjah, UAE, to sell in the United States. This arrangement led to a five-year dispute over trademarks, copyrights, and various business dealings.
Also read: FDA Updates Sriracha Recall: Risk Level Declared
On March 28, 2024, General Petroleum filed a lawsuit against Stanley Oil in the Eastern District of New York, alleging multiple infringements, including trademark and copyright violations, unfair competition, and trafficking in counterfeit goods.
While the parties had engaged in productive settlement discussions, these discussions ceased around June 12 when Stanley Oil changed legal counsel. On June 14, General Petroleum filed for a preliminary injunction, which Judge Morrison granted, ruling that the company demonstrated a strong likelihood of success on the merits of its claims.
Stanley Oil’s Chapter 11 bankruptcy filing triggers an automatic stay on any ongoing litigation while the case progresses. The company’s bankruptcy attorney did not respond to requests for comment.
Stanley Oil offers a range of products, including automobile, industrial, and marine lubricants; automotive grease; additives and chemicals; brake fluid; coolant; and base oil, marketed under the Stanley, Syntrol, Prime, and Hexagen brands.
- Last $2,710 check in November for eligible 62-year-olds on Social Security retirement benefit payments - November 24, 2024
- In which states will SNAP benefits be paid before Black Friday? Payment days and amount - November 24, 2024
- Discover Valuable Silver Coins That Could Be Worth a Fortune – Find Out Now! - November 24, 2024
