Kunkle hopes to reach deal

The owner of Portland's last new car dealership is hopeful a settlement can be reached with a bank that has filed a foreclosure lawsuit against him.

"I'm optimistic we'll get it (a settlement) done," Ken Kunkle said Wednesday afternoon.

Ken Kunkle is owner of Jay County's sole GM dealership, which has been sued by First Merchants Bank claiming Kunkle has defaulted on more than $1.3 million in loans.

Kunkle's attorney, Michael Shanahan of Indianapolis, said the financial problems are linked to the Portland dealer's acquisition of the GM dealership in Hartford City, which was one of those later closed when GM was in bankruptcy.

"When GM wound down that dealership (in Hartford City), they left Ken holding the bag," Shanahan said. "Ken's in a situation a lot of dealers are in, and I think the bank understands that. ... They understand it's not Ken's fault." The Hartford City dealership closed in August of 2009.

While negotiations continue, Ken Kunkle Chevrolet-Cadillac continues to service and sell cars.

"I sold two today," Kunkle said. "It's frustrating. We thought we had things worked out."

Shanahan said talks with the bank are continuing. "I've spoken with the bank's attorney today (Wednesday), and the bank is hoping for a settlement as is Ken." He noted, however, "I can't speak for the bank. ... We should know more in the next several weeks."

According to the bank's suit, Kunkle has defaulted on four loans.

The suit seeks foreclosure on four properties: The dealership at 414 N. Meridian St., the former Hartford City dealership at 1301 S. Walnut St., a North Commerce Street property adjacent to the Portland dealership, and the former Super Supply building at 1015 N. Meridian St.

Kunkle also has a Commercial Security Agreement with the bank, and First Merchants seeks to collect all of his collateral, including inventory.

Named in the suit are Ken Kunkle and Keitha L. Kunkle. Also listed are Kunkle Properties, Ken Kunkle GM Inc., the Internal Revenue Service, and MainSource Bank, which has a mortgage on a Kunkle property.

Portland was at one time home to Chrysler, Ford, Buick, and American Motors new car dealerships, but as the industry has consolidated and manufacturers have gone under, most have disappeared.

Fuqua Chrysler-Plymouth is the only other new car dealer in Jay County.

It has an affiliated used car lot in Portland. Moser Motors of Berne, a Ford dealership, also has an affiliated used car lot in Portland.[[In-content Ad]]