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Parallel importer Frankel folding up over debts
Christopher Tan
Sat, Dec 22, 2007
The Straits Times
HEATED competition among parallel importers has claimed its first casualty: Frankel Motor, one of the more active players in the field.
The four-year-old company which sold about 1,000 mostly Japanese cars last year from its Frankel Avenue and MacPherson Road outlets, is in receivership after it fell behind on payments to financial institutions.
Companies like Bank of East Asia, Kenso Leasing, OCBC Bank and GE Money have filed lawsuits to try and recover sums ranging from $82,000 to $4.4 million from Frankel. Similar writs have been filed against associate Frankel Leasing; and their director Mr Ho Yik Fuh.
Salesmen at Frankel yesterday said they were unaware of its financial woes, even if the crisis has hit several customers. Some have made police reports to try and recover their deposits or get their cars delivered.
A police spokesman said "we're looking into the matter".
One buyer, information technology professional Jeremy Chan, 31, said: "I booked my Toyota Axio in September, my certificate of entitlement was secured in October, but I got it only this Wednesday."
He added that he was 'forced' to pay $3,000 on top of the purchase price of $60,000 to get it. "It was a nightmare," he said. "I am making a police report too."
Parallel importers emerged in the 1990s when car import rules were relaxed. From a slow start, they now make up 25 per cent of new car sales.
But success spawned scores of players, who undercut each other. Observers said this could have been Frankel's problem.
Two of its lenders - OCBC Bank and GE Money - have appointed receivers to try and recover some of the debts by selling off Frankel's assets, mainly cars.
OCBC and GE Money have appointed receivers, Ferrier Hodgson and Stone Forest respectively, to the task. OCBC is believed to be owed about $4.4 million and GE Money around $2 million.
Mr Timothy Reid of Ferrier Hodgson said yesterday his firm is advertising in today's Straits Times Classified section to dispose of a number of Frankel's cars, which are now in a warehouse.
Christopher Tan
Sat, Dec 22, 2007
The Straits Times
HEATED competition among parallel importers has claimed its first casualty: Frankel Motor, one of the more active players in the field.
The four-year-old company which sold about 1,000 mostly Japanese cars last year from its Frankel Avenue and MacPherson Road outlets, is in receivership after it fell behind on payments to financial institutions.
Companies like Bank of East Asia, Kenso Leasing, OCBC Bank and GE Money have filed lawsuits to try and recover sums ranging from $82,000 to $4.4 million from Frankel. Similar writs have been filed against associate Frankel Leasing; and their director Mr Ho Yik Fuh.
Salesmen at Frankel yesterday said they were unaware of its financial woes, even if the crisis has hit several customers. Some have made police reports to try and recover their deposits or get their cars delivered.
A police spokesman said "we're looking into the matter".
One buyer, information technology professional Jeremy Chan, 31, said: "I booked my Toyota Axio in September, my certificate of entitlement was secured in October, but I got it only this Wednesday."
He added that he was 'forced' to pay $3,000 on top of the purchase price of $60,000 to get it. "It was a nightmare," he said. "I am making a police report too."
Parallel importers emerged in the 1990s when car import rules were relaxed. From a slow start, they now make up 25 per cent of new car sales.
But success spawned scores of players, who undercut each other. Observers said this could have been Frankel's problem.
Two of its lenders - OCBC Bank and GE Money - have appointed receivers to try and recover some of the debts by selling off Frankel's assets, mainly cars.
OCBC and GE Money have appointed receivers, Ferrier Hodgson and Stone Forest respectively, to the task. OCBC is believed to be owed about $4.4 million and GE Money around $2 million.
Mr Timothy Reid of Ferrier Hodgson said yesterday his firm is advertising in today's Straits Times Classified section to dispose of a number of Frankel's cars, which are now in a warehouse.
