El Monte : Car Dealer Foreclosure
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The El Monte Redevelopment Agency has authorized City Atty. David F. Gondek to begin foreclosure proceedings against Glendora-based Grand Motors Inc. The dealership opened this year on a 5-acre Valley Boulevard lot, formerly home of Longo Toyota, and was selling cars until its bankruptcy filing this month.
Longo was relocated by the agency last year.
Grand Motors, Grand Chevrolet Inc., Grand Wilshire Finance Corp. and Grand Rizal Inc. have filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. All are controlled by Eminiano (Jun) Reodica, who is believed to be out of the country.
The city had agreed to defer payment of $1 million for five years at 10% interest to help Grand Motors purchase the site.
Councilman Jeff Marrone said the city would not lose money on the company’s bankruptcy because the city’s outstanding $1 million involvement is secured by a trust deed on the property.
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