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The Roadster Factory customer investment program

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smaceng Avatar
smaceng Scott Macdonald
Martinez, CA, USA   USA
As Charles Runyan has passed away last month, his estate attorney has stopped all monthly payments. He is now to determine if the value of the estate is sufficient to repay the investors in full, partially, or with a payment program. Well is was good while it lasted!! RIP Charles. Scott in CA

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Fictioneer Avatar
Fictioneer Doug Hirt
Colorado Springs, CO, USA   USA
I thought Charles had taken out insurance policies in amounts to cover these personal loans? I'd inquired into this program 2 years ago, but never pulled the trigger.
Doug



"Mr. Filby, do you think he'll ever return?"
"One cannot choose but wonder. You see . . . he has all the time in the world!"

Bpt70gt Avatar
Bpt70gt Brian T
Westmoreland, NH, USA   USA
WoW, I dodged that bullet. I was an investor and just a couple months ago the investment matured and I settled out. Best decision I've made in the past couple months.. Thanks for that information Scott.

BT

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titanic Berry P
Albany, OR, USA   USA
I just received the same notice and have the same concerns. On one hand the loan is "unsecured". On the other hand, CR did maintain a life insurance policy specifically for the repayment of the loan in the event of his death. We shall see.
Berry

smaceng Avatar
smaceng Scott Macdonald
Martinez, CA, USA   USA
Well, I did some digging. The business was started in 6/19/1978 with Charles Runyan as the Sole Proprietor of The Roadster Factory. I am not an attorney, but I believe that there is no difference between Charles and The Roadster Factory as far as ownership. Upon the passing of Charles, The Roadster Factory would cease to exist IF there was no plan in place to continue it after his passing. I assume there was a plan as TRF is still operating. I assume all the assets of the company would be totaled up. Secured creditors would be paid first ( meaning like property and any parts sold to TRF on credit). Accounts payable and unsecured creditors (like investors in the investment program) would be paid out of any remaining assets. What I do NOT know is how the investment program relates to the life insurance policy that was said to be available to pay off in case of Charles's passing. As they say, "Eventually we will find out!"

Scott in CA

poolboy Avatar
poolboy Ken D
Sandy Hook, MS, USA   USA
I don't mean to be ghoulish, but does anyone know the cause of death ?



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titanic Berry P
Albany, OR, USA   USA
I was curious too, PB.
No lawyer here either, but I just reread the clause concerning the insurance policy. The payees (investors) are named as the beneficiaries. So, it would seem that the proceeds wouldn't go into the pot to satisfy other creditors. But, I am also the same person that owned Worldcom and GM bonds.
I always found Charles an honorable person to deal with and his dedication to the hobby has resulted in a parts supply that is better than when the cars were being produced. The 2 vol. TR6 catalog will be part of his legacy.
Berry

RobTAR Robert I
Seattle, WA, USA   USA
In reply to # 1591393 by smaceng Well, I did some digging. The business was started in 6/19/1978 with Charles Runyan as the Sole Proprietor of The Roadster Factory. I am not an attorney, but I believe that there is no difference between Charles and The Roadster Factory as far as ownership. Upon the passing of Charles, The Roadster Factory would cease to exist IF there was no plan in place to continue it after his passing. I assume there was a plan as TRF is still operating. I assume all the assets of the company would be totaled up. Secured creditors would be paid first ( meaning like property and any parts sold to TRF on credit). Accounts payable and unsecured creditors (like investors in the investment program) would be paid out of any remaining assets. What I do NOT know is how the investment program relates to the life insurance policy that was said to be available to pay off in case of Charles's passing. As they say, "Eventually we will find out!"

Scott in CA

Sole proprietorship means that the owner is liable for any legal actions or debts against the company as if he was the company. Suppose TRF folded and the total assets once liquidated was less than debt owed they would then dip into his personal estate and liquidate until the debtors were made whole.

A sole proprietorship is the absolute worst type of business licence to have. Say TRF had made some A-arms and one ended up being faulty and someone died. If the company lost a suit for 10 million and was worth 5 million they would then take the other 5 million out of his personal assets leaving him with nothing.

It sounds like he had insurance to cover everything including the investments. Had he not, and the company folded and ended up being worth less than the debts, then the inheritance he left behind for his family would be liable for the rest.

elwood Elwood Manteno
Highland Park, NE Illinois, USA   USA
In reply to # 1591395 by poolboy I don't mean to be ghoulish, but does anyone know the cause of death ?

Unconfirmed, but I was told by one of the Western PA guys that Charles was scheduled for a heart procedure and passed away before it had been done.

grubscrew Avatar
grubscrew grub screw
The suburbs of, Winfield, Maryland, USA   USA
In reply to # 1591793 by elwood
In reply to # 1591395 by poolboy I don't mean to be ghoulish, but does anyone know the cause of death ?

Unconfirmed, but I was told by one of the Western PA guys that Charles was scheduled for a heart procedure and passed away before it had been done.

I wouldn't call this confirmation, but I did read that somewhere else as well.



Dave
1970 Spitfire Mk3
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ng19delta Avatar
ng19delta Scott Roberts
Merchantville, NJ, USA   USA
1974 Triumph TR6 "Gypsy Rose T..."
In reply to # 1591849 by grubscrew
In reply to # 1591793 by elwood
In reply to # 1591395 by poolboy I don't mean to be ghoulish, but does anyone know the cause of death ?

Unconfirmed, but I was told by one of the Western PA guys that Charles was scheduled for a heart procedure and passed away before it had been done.

I wouldn't call this confirmation, but I did read that somewhere else as well.

Sad in any case... I hope TRF survives OK... I know one of his sons passed away unexpectedly a couple years ago... What will be the future of TRF?

LFMTR4 Avatar
LFMTR4 Lou Mijares
Scottsboro, AL, USA   USA
Charles’ son Albert has been running it with him for few years, hopefully he’ll continue the tradition.

Tonyfixit Avatar
Tonyfixit Tony M
Duncan, BC, Canada   CAN
In reply to # 1591989 by LFMTR4 Charles’ son Albert has been running it with him for few years, hopefully he’ll continue the tradition.

I fear what seemed like a good idea years back could be fatal to TRF if it has to pay out investors.

As an aside. I did know of a TR6 that was restored as a company asset. The company ws later liquidated and the car sold
(Before I got a look-in) the car is now back in the hands of the previous owner........Hmmm?

RobTAR Robert I
Seattle, WA, USA   USA
In reply to # 1592020 by Tonyfixit
In reply to # 1591989 by LFMTR4 Charles’ son Albert has been running it with him for few years, hopefully he’ll continue the tradition.

I fear what seemed like a good idea years back could be fatal to TRF if it has to pay out investors.

As an aside. I did know of a TR6 that was restored as a company asset. The company ws later liquidated and the car sold
(Before I got a look-in) the car is now back in the hands of the previous owner........Hmmm?

As long as TRF stays open they should not be required to pay out. Business as usual unless they enter a bankruptcy, or get liquidated because there is more than one inheritee and they cannot agree on keeping the business open.

clifish Avatar
clifish Cliff Deger
St. James, NY, USA   USA
Except that they have stopped making interest payments which is probably a breach of contract signed with the investors I would believe. Charles always said he had a whole life policy to cover these, but unless it was structured right it could possibly be used for other purposes. I doubt each and every investor was listed on the policy as beneficiary as the policy would have to have been continually updated. I hope this works out for all involved including TRF as it would be a great loss to the LBC industry if they folded. Charles was a very upstanding guy, I just hope he had the proper provisions for this.



74 TR6 - Carbs by POOLBOY
81 Corvette

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