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DeLorean Motor Co. Bankruptcy Closes

30 May 2000

DeLorean Motor Co. Bankruptcy Closes With Over 90% Distribution to Creditors

    DETROIT , May 30 The DeLorean Motor Co. bankruptcy case , originally filed 
as a Chapter 11 case in October , 1982 , and converted toChapter 7 in 
December , 1983 , is about to close after 18 years.  "This case was
a no-asset case when it converted," says David W. Allard , the trustee of 17
years.  "Hundreds of lawsuit recoveries over the years , including one very
large jury verdict in New York in 1998 , created a sizable estate for
distribution."  Allard is with the Detroit law firm of Allard & Fish , P.C.
and is president-elect of the National Association of Bankruptcy Trustees.
    Attorneys estimated in 1983 that creditors would receive less than 5 cents
on the dollar , yet the unsecured creditors received an interim distribution of
9% in 1990 and are currently receiving checks for 90% of the remaining
balance.  "I am hopeful that creditors will be able to collect up to 100% of
their principal in a final distribution to be made near the year end.  That's
almost unheard of in Chapter 7 cases," says Allard.  "However , we are having
difficulty locating all the creditors entitled to payment after so many
years."
    The complex and often contentious international case has been presided
over by Judge Ray Reynolds Graves , United States Bankruptcy Court , Detroit , MI.  Allard is represented by Deborah Fish of Allard & Fish , Detroit , MI , Sheldon Toll , Robert Weiss , and Judy Calton of Honigman Miller Schwartz and
Cohn , Detroit , MI , Whitney Gerard and Zachary Shimer of Chadbourne & Parke , New York , NY and Michael Hess , the lead trial lawyer in the New York case , who
left Chadbourne & Parke after concluding the trial to become Mayor Giuliani's
City Corporation Counsel.  The firm of Jay Alix & Associates led by Jay Alix
and Rob Rock , Southfield , MI , New York , NY , and Chicago , IL , has been Allard's
accountant since 1983.  Donald M. Robiner , United States Trustee , Cleveland , OH and Marion J. Mack , Jr. , Assistant United States Trustee , Detroit , MI have
administered the bankruptcy proceeding for many years.