LMP closer to dissolution with pending sale of 6 dealerships

Last month, LMP said it signed an agreement to sell its Stellantis store in White Plains, N.Y., which it expects will generate $15.8 million. That transaction also is expected to close in October.

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

LMP representatives did not respond to multiple requests for comment.

While disclosing the sales details, LMP in the same regulatory filing this week said CEO Samer Tawfik, who also took on the interim CFO title after LMP fired Bellaflores, would see his annual base salary increase by $360,000 to $660,000.

LMP also said its board approved a modification to COO Richard Aldahan’s compensation. In addition to his base salary of $300,000, Aldahan is now eligible to receive a one-time bonus of $400,000 if several targets, including “the consummation of the sales of each of the company’s dealerships,” are met.

This week, the retailer said its board recommended that company stockholders “vote to approve a proposed plan of liquidation of LMP’s assets and the dissolution of the company” at its next special meeting of stockholders. In this week’s regulatory filing, LMP said the date and time of the special meeting “will be announced at a later date.”

“We believe that the plan of liquidation will maximize stockholder value as we continue to sell our remaining assets,” Tawfik said in a statement Monday. “Management believes that upon finalization of the plan of liquidation we expect that the company will be able to distribute approximately $115 million to $126 million to shareholders.”

Based on 10.9 million shares outstanding, that would indicate shareholders would receive $10.55 to $11.56 per share. As of May, Tawfik held a third of the company’s stock.

LMP had a market cap of $84.8 million as of market close Thursday. The auto retailer’s stock had traded higher than $20 a share last year. It closed Thursday at $7.77.

LMP hasn’t reported financial results for the fourth quarter of 2021 or the first or second quarters of this year and has said it will restate financial results for the first three quarters of 2021.

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