We conclude our account of the life and career of John Zachary DeLorean.
The DeLorean Motor Company was, from January 1982, under the control of the receivers. Their job, in the first instance, is to see if a buyer can be found for the company. If none is forthcoming, they are required to dispose of the company’s assets in an orderly manner and raise as much money as possible to repay creditors in order of seniority, either fully or, more usually, in part (cents on the dollar). There is rarely anything left over for shareholders after this is done.
DeLorean’s biggest asset was its large inventory of unsold cars, which was increasing as production continued into the spring of 1982. Deep discounts offered on 1981 stock and exhortations to dealers to buy inventory failed meaningfully to improve the situation, and production at Dunmurry was halted in May 1982.
DMC filed for bankruptcy in October, although a skeleton staff completed around 100 partially built cars before the year end. Consolidated International, a US company based in Columbus, Ohio, acquired the remaining stock from the liquidators at a deep discount and attempted to Continue reading “Hero or Villain? (Part Three)”