Chapter 7 Trustee Anne Elizabeth Burns filed an August 24, 2026 notice extending the Proceeds Bar Date in the Tricolor Holdings liquidation from August 31, 2026 to January 31, 2027. The notice reports an agreement between the Trustee and the Secured Parties under the court’s December 30, 2025 sale order. The deadline concerns asserted ownership interests, security interests, and liens in net vehicle-sale proceeds, including interests asserted by the Trustee on behalf of the estates.
Tricolor Holdings, LLC filed its voluntary chapter 7 petition on September 10, 2025, in the U.S. Bankruptcy Court for the Northern District of Texas. The petition identifies Irving, Texas, as its principal place of business. The liquidation involves vehicle sales, loan servicing, and disputes over assets and proceeds.
U.S. Bankruptcy Court, Northern District of Texas, Dallas Division
Lead case number
25-33487
Petition date
September 10, 2025
Chapter 7 Trustee
Anne Elizabeth Burns
Vehicles covered by the December 2025 sale order
Approximately 10,000 vehicles in the debtors’ possession at filing, including prepetition repossessions
Sale deadline specified in that order
April 30, 2026, for substantially all covered vehicles
Extended Proceeds Bar Date
January 31, 2027, under the August 24, 2026 notice
Case Snapshot
Vehicle Sales and Claims to the Proceeds
The court’s December 30, 2025 sale-procedures order authorized sales free and clear of liens, claims, interests, and encumbrances. Its definition of covered vehicles includes approximately 10,000 vehicles held by the debtors as of the petition date, including vehicles repossessed before filing. It excludes vehicles repossessed by or on behalf of Vervent as successor servicer after the petition date.
The order directed the Trustee to work with Vervent and Holman to sell substantially all covered vehicles by April 30, 2026. That was the deadline specified in the order; it does not establish that those sales were completed. The order also required weekly vehicle-sales reports and a final report filed with the court.
Net proceeds were to be held in escrow pending resolution of distribution disputes. Liens and interests in a sold vehicle would attach to its net proceeds with the same priority, interest, and extent as before the sale. Proceeds attributable to vehicles determined to be non-estate vehicles would not constitute property of a debtor.
Notice requirements. The sale order requires parties asserting interests in the net proceeds to file an Asserted Lien or Interest Notice. The notice must include evidence of the claimed interest and its perfection, identify the relevant vehicles with particularity, and provide information needed to determine validity or priority. The order states that failure to file timely bars a party from receiving a distribution of those proceeds, while separately preserving Holman’s ability to assert lien or security-interest rights under the order.
The August 24 extension changes the Proceeds Bar Date established by this process. It does not announce a general deadline for every type of bankruptcy claim.
Secured-party designations. The sale order identifies Wilmington Trust, groups of asset-backed noteholders, JPMorgan Chase, Fifth Third Bank, TBK Bank, ACV Capital, Manheim Remarketing, and Origin Bank within its defined group of Secured Parties. It expressly states that the designation does not admit that a named party holds a secured claim and preserves challenges to that status. The list therefore does not establish a final allocation of liens or recoveries.
Business Footprint and Early Liquidation Work
In her September 26, 2025 motion for limited operating authority, Burns described Tricolor as a Texas-based subprime auto lender with approximately 60 retail locations across the Southwest and Illinois. Alongside vehicle sales, the company provided financing, repairs, and related services. The motion states that Burns was appointed Trustee on September 10, 2025, and that the chapter 7 cases were being jointly administered for procedural purposes.
The Trustee requested authority to operate on a limited basis through April 8, 2026, to locate and preserve assets, maintain access to business records, and wind down administrative functions. This filing was a request for authority, rather than an order granting it.
The motion also described difficulties locating property. According to the Trustee, undetermined amounts of funds remained in drop boxes, safes, or with non-debtor entities. An undetermined number of vehicles remained at company locations, including some belonging to customers who could not access them.
Federal Fraud Allegations
On December 17, 2025, federal prosecutors announced charges against founder and former CEO Daniel Chu and former COO David Goodgame. Prosecutors alleged that, from about 2018 through 2025, executives double-pledged collateral and manipulated asset characteristics to make ineligible collateral appear to meet financing requirements. By August 2025, Tricolor allegedly had pledged approximately $2.2 billion of collateral against approximately $1.4 billion of real collateral. The alleged $800 million difference reflected multiple schemes, rather than solely duplicate pledges. Justice Department announcement.
Chu was charged with operating a continuing financial crimes enterprise, carrying a maximum potential sentence of life imprisonment. Goodgame was charged with conspiracy, bank fraud, and wire fraud affecting a financial institution; the announcement did not charge him with the continuing-enterprise count. Prosecutors also announced that former CFO Jerome Kollar and former finance executive Ameryn Seibold had pleaded guilty on December 16, 2025, and were cooperating. These describe the December announcement, not subsequent case outcomes. Charges against Chu and Goodgame were allegations, and both were presumed innocent unless proven guilty. Justice Department charges and plea details.
Trustee Disputes With Chu
Questions at the creditors’ meeting. On February 4, 2026, the Trustee moved to compel answers from Chu following his appearance at the January 20 section 341 meeting. The motion states that Chu invoked the Fifth Amendment in response to virtually every question.
The Trustee acknowledged that some invocations were facially proper but challenged the breadth of his refusal. She sought answers concerning his signature on the petition, the debtors’ financial affairs and assets, his employment, and compensation. Those were the Trustee’s arguments for compelling testimony, not a court determination that Chu had improperly asserted the privilege.
Defense-cost insurance. A redacted Trustee objection filed February 26, 2026 opposed unrestricted access by Chu to directors and officers insurance proceeds for defense expenses. The Trustee described a $15 million policy limit and argued that proceeds were estate property because the policies covered the debtors directly and available coverage was insufficient for the anticipated claims.
The objection acknowledged Chu’s general right to advancement under the policies but argued for preserving and allocating shared proceeds among insureds. It does not establish a final ruling on ownership of the proceeds or Chu’s entitlement to payment.
Servicing Orders and the Temporary Repossession Moratorium
The court entered a Seventh Amended Vervent order on March 4, 2026. The order directed Vervent to collect and account for receivables and take responsibility for securing and protecting vehicle assets, including keys, titles, and license plates. It also addressed payment processors, collection accounts, and information sharing with specified financing parties.
Some relief was expressly temporary: paragraphs 4, 5, and 8 were scheduled to terminate on April 1, 2026, at 11:59 p.m. prevailing Central Time, absent a further court order. The March order therefore should not be read as an indefinite statement of every servicing authorization.
Separately, the court’s February 23, 2026 temporary repossession-moratorium order prohibited Vervent from repossessing borrower vehicles securing consumer loans originated by the debtors during a defined period: noon Central Time on February 20 through noon Central Time on March 23, 2026. The order provided for expiration without further notice or hearing unless the court ordered otherwise.
During that period, the order allowed other servicing activities, including collecting payments, issuing default notices, accepting voluntary surrenders, and selling vehicles repossessed before the moratorium. It directed borrowers to continue ordinary-course payments under their loan documents and did not modify the loan agreements. This was a historical, time-limited repossession restriction.
Timeline
Date
Event
September 10, 2025
Tricolor Holdings files its chapter 7 petition; Burns is appointed Trustee, according to her subsequent operating motion
September 26, 2025
Trustee seeks limited operating authority through April 8, 2026
December 16, 2025
Kollar and Seibold plead guilty, according to the following day’s Justice Department announcement
December 17, 2025
Prosecutors announce charges against Chu and Goodgame
December 30, 2025
Court enters the vehicle-sale procedures order
January 20, 2026
Chu appears at the continued section 341 meeting, as described in the Trustee’s motion
February 4, 2026
Trustee moves to compel Chu’s answers
February 23, 2026
Court enters a temporary repossession moratorium effective February 20
February 26, 2026
Redacted Trustee objection concerning D&O insurance proceeds is filed
March 4, 2026
Court enters the Seventh Amended Vervent order
March 23, 2026
Expiration specified in the February moratorium order, absent further order
April 1, 2026
Termination specified for paragraphs 4, 5, and 8 of the Seventh Amended Vervent order, absent further order
April 30, 2026
Deadline specified for sale of substantially all vehicles covered by the December sale order
August 24, 2026
Trustee files notice extending the Proceeds Bar Date
January 31, 2027
Extended Proceeds Bar Date stated in the August notice
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sale-procedures order /documents/95e8022c-8e88-4d9c-bc36-da84f2775b18/
motion for limited operating authority /documents/4a546ee7-fad0-4905-8ceb-28dfb1930f62/
moved to compel answers from Chu /documents/647a22bb-6d6d-48a0-bd6f-fd9acd0f76e0/
redacted Trustee objection filed February 26, 2026 /documents/84ba5fb6-4572-43b3-9ba7-692336781c6c/
Seventh Amended Vervent order /documents/252b491b-6f9b-4d94-aebe-e33e5bc620a5/
temporary repossession-moratorium order /documents/9f1d40e7-f89f-4150-8da2-01356faf3ac7/
Justice Department announcement https://www.justice.gov/usao-sdny/pr/ceo-cfo-coo-charged-connection-billion-dollar-collapse-tricolor-auto
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.