XLerate Hires Sherk

June 02, 2020

XLerate Group’s Columbus Fair Auto Auction announced that Tim Sherk has joined as its new general manager.  Sherk’s hire follows the retirement of CFAA’s former president and general manager, Greg Levi, who plans to devote more time to his compliance management and investment activities.

Sherk comes to Columbus Fair with over 20 years of auto auction management experience in both independent and large corporate-owned auctions. Tim has successfully managed sales teams and auctions in two other major markets, Florida and Tennessee.

“Tim’s management approach is a great fit with his new CFAA team, and his expertise aligns with our growth strategy at CFAA,” said XLerate’s CEO Cam Hitchcock.

Sherk said joining the auction is “an exciting opportunity to work with one of the largest independent auctions that is part of a rapidly-growing auction group.”

Levi said his decision to retire is “bittersweet.” But he said the relationships he developed with former auction owner Alexis Jacobs and the auction staff  were “impactful’ for him and his family. He added Sherk shares the same “unwavering commitment to world-class service.”

After first postponing the 2020 show dates, organizers of the New York International Auto Show have decided the next show will take place April 2-11, 2021, with press days on March 31 & April 1. 

The Javits Convention Cente is being used as a  field hospital for COVID-19 cases.
The Javits Convention Center is one of NYC's largest field hospitals for COVID-19 cases

The Jacob K. Javits Convention Center, originally scheduled to host the event, continues to be closed for all expo business due to its role as a field hospital for COVID-19 cases.

The show, originally scheduled for last month, was  initially postponed to late summer, but organizers pulled the plug for 2020.

“Since the beginning of this pandemic, we have worked closely with the Governor’s office and with Javits officials to protect our attendees,”

The first New York Auto Show, 1907 Madison Square Garden
The first New York Auto Show, 1907 Madison Square Garden

said Mark Schienberg, president of the Greater New York Automobile Dealers Association, the organization that owns and operates the New York Auto Show. “We also understand the immense planning needed for the automakers and their exhibit partners to construct a show of this magnitude. Because of the uncertainty caused by the virus, we feel it would not be prudent to continue with the 2020 show and instead are preparing for an even greater 2021.”

 

Manheim announced that “increased sales activity” and “early signs of economic recovery” have in part led it to recall 300 workers just weeks after furloughing 9,000 U.S. employees.

In a May 27 release, Manheim President Grace Huang said a boost in reconditioning requests led to the return of the 300 workers.

Manheim President Grace Huang
Manheim President Grace Huang

“As business conditions continue to improve, we plan to recall even more furloughed employees,” Huang stated.

She reported that with lots at full capacity, two-thirds of locations are participating with expanded viewing days and times. Manheim also has wireless tracking technology at 13 locations, with plans to double that total for year’s end, Huang reported.

Huang said Manheim is accelerating its investments in condition reports and imaging, as it is still limited to an all-digital format. The company promises key enhancements in the coming months, while continuing to comply with CDC guidelines.

Manheim continues to waive simulcast fees for buyers and sellers and waive the Manheim express sell fee for self-listed vehicles. The company also offers daily MMR retention values to help with valuations. It’s also waiving fees for vehicles sold without a title or title absent, as well as other assistance.

 

KAR Auction Services Inc. has announced the placement of $550 million in newly issued perpetual convertible preferred stock of KAR Global. The preferred stock has a 7.0 percent dividend, which shall be paid in-kind for the eight quarters following closing, and thereafter in cash or in-kind at KAR’s option. The initial conversion price of $17.75 per share represents an approximately 42 percent premium to KAR’s closing price of $12.52 per share on May 22. The investment was led by funds advised by Apax Partners, a global private equity advisory firm, with participation by Periphas Capital L.P. The proceeds of the transaction will be utilized to expedite the resumption of operations to meet market demand, sustain the company’s technology platforms and development pipeline and navigate the industry and economic recovery.

“This transaction will help us continue to support our global customers and further accelerate our digital transformation. Apax is the right strategic partner for our company, employees and stockholders, and their investment reinforces the strength of our brands, market position and long-term strategy for growth and expansion,” said Jim Hallett, Chairman and CEO of KAR.

Kroll Bond Rating Agency (KBRA) has assigned ratings to five classes of American Credit Acceptance Receivables Trust 2020-2, an auto loan ABS transaction.

American Credit Acceptance Receivables Trust 2020-2 issued five classes of notes totaling $287.833 million that are collateralized by a pool of retail automobile contracts, made to subprime obligors and secured by new and used automobiles and motorcycles.

The structure and collateral for ACAR 2020-2 are generally similar with the previous ACAR 2020-1 transaction. However, key structural differences from the prior deal include higher enhancement for all classes, a 1 percent increase to the reserve and no prefunding. In addition, compared to ACAR 2020-1, ACAR 2020-2 includes limited called collateral and stronger asset eligibility that excludes loans that have received deferrals from March 15 to the cut-off date. The transaction has initial hard credit enhancement levels of 65.25 percent for the Class A Notes through 23.50 percent for the Class E Notes. Credit enhancement consists of excess spread, overcollateralization, subordination (except for the Class E Notes) and a reserve account funded at closing.

The financial impact of COVID-19 has included economic slowdown and rising unemployment, which is expected to adversely impact the performance of auto loans, including those supporting the subject transaction. Owing to KBRA’s expectations of high and rising unemployment through Q3 2020 followed by improved conditions, KBRA increased its base case default assumptions for the subject pool. KBRA also used lower recovery rates and a longer recovery lag assumption on defaulted loans.

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