LMP nearer to dissolution with pending sale of 6 dealerships

Final month, LMP stated it signed an settlement to sell its Stellantis store in White Plains, N.Y., which it expects will generate $15.eight million. That transaction additionally is predicted to shut in October.

LMP has not reported a gross sales settlement for the one remaining franchised dealership in its portfolio, a Chevrolet-Buick-GMC-Cadillac retailer in Greeneville, Tenn., or any of its used-vehicle shops.

LMP representatives didn’t reply to a number of requests for remark.

Whereas disclosing the gross sales particulars, LMP in the identical regulatory submitting this week stated CEO Samer Tawfik, who additionally took on the interim CFO title after LMP fired Bellaflores, would see his annual base wage enhance by $360,000 to $660,000.

LMP additionally stated its board authorized a modification to COO Richard Aldahan’s compensation. Along with his base wage of $300,000, Aldahan is now eligible to obtain a one-time bonus of $400,000 if a number of targets, together with “the consummation of the gross sales of every of the corporate’s dealerships,” are met.

This week, the retailer said its board beneficial that firm stockholders “vote to approve a proposed plan of liquidation of LMP’s property and the dissolution of the corporate” at its subsequent particular assembly of stockholders. On this week’s regulatory submitting, LMP stated the date and time of the particular assembly “might be introduced at a later date.”

“We imagine that the plan of liquidation will maximize stockholder worth as we proceed to promote our remaining property,” Tawfik stated in an announcement Monday. “Administration believes that upon finalization of the plan of liquidation we count on that the corporate will be capable to distribute roughly $115 million to $126 million to shareholders.”

Based mostly on 10.9 million shares excellent, that might point out shareholders would obtain $10.55 to $11.56 per share. As of Might, Tawfik held a 3rd of the corporate’s inventory.

LMP had a market cap of $84.8 million as of market shut Thursday. The auto retailer’s inventory had traded larger than $20 a share final yr. It closed Thursday at $7.77.

LMP hasn’t reported monetary outcomes for the fourth quarter of 2021 or the primary or second quarters of this yr and has stated it is going to restate monetary outcomes for the primary three quarters of 2021.