Tricolor Paid $125 Million for Vehicles It Will Now Auction Off

Bankrupt subprime auto lender Tricolor Holdings won court permission to hold an auction for about 9,500 vehicles that it acquired for $125 million before the company collapsed earlier this year.

Proceeds from the sales will be set aside while the company works with creditors on a plan to divide the money, lawyers for the trustee overseeing Tricolor said in a court hearing Thursday afternoon in Dallas.

Creditors have either claimed ownership of some of the cars, or argued that they have first call on any cash from the sales. Tricolor and its creditors will try to come up with a ...