Winget tried to win the confidence of the court-appointed administrator for Peguform, Jobst Wellensiek.
But the reorganization deal got squashed, and Winget--who still owns the company--and creditors remain in negotiations.
Larry Winget got rich off auto parts, but enraged German automakers and U.S. creditors.
Winget got the Bank One syndicate and bondholders to sign documents saying they would try to raise the money.
But Winget's creditors may decide it's easier just to bring down the curtain.
Now, though, at least one of Winget's creditors is suing, alleging that he didn't fully reveal Venture's precarious condition.
For minors, Mr. Winget says, it may be necessary to appoint a guardian.
Winget , chief executive and sole shareholder of Fraser, Michigan, auto parts supplier Venture Holdings , has found a third way.
Winget , chief executive and sole shareholder of Fraser, Mich. auto parts supplier Venture Holdings , has found a third way.
That leaves Winget and Venture's creditors little time to cut a deal.
The problem, as Forbes reported a year ago, was that Winget also owned affiliated companies that were held separately from Venture (see " Auto-Da-Fe").
Some to make interest payments--a lot into companies controlled by Winget.
Winget resigned as chief executive, and five independent directors were appointed.
The transactions between Venture and Winget's separate affiliates were largely disclosed, but with so much money going out the door, Venture eventually had trouble paying its bills.
The directors of Venture's largest subsidiary, Germany's Peguform Group, became so disenchanted with Winget's management that they declared this entity in-solvent and put it into receivership behind his back last year.
The directors of Venture's largest subsidiary, Germany's Peguform Group, became so disenchanted with Winget's management that they declared this entity insolvent and put it into receivership behind his back last year.
Back in the States, to stave off a bankruptcy of Venture, Winget struck an agreement with the bank syndicate to end his sweetheart deals: Venture would make no more payments to his outside companies.
Once in an FLP or LLC, the assets fall under the control of a manager, who decides the size and timing of distributions, says Scott Winget, a senior director of planning at Wells Fargo Family Wealth.
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