EDGAR 10-K Filing

Company CIK: 1578742
Filing Year: 2025
Filename: 1578742_10-K_2025_0001410578-25-000505.json

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ITEM 1. BUSINESS
Item 1. Business
Overview
GPB Automotive Portfolio, LP (the “Partnership”, “we”, “us”, “our” or the “Registrant”) is a holding company which was organized as a Delaware limited partnership on May 27, 2013, and commenced operations on that date. As further described below, the Partnership has sold substantially all of its assets and is now in receivership.
GPB Capital Holdings, LLC (“General Partner”, “GPB Capital”, “Capital Holdings”, or “GPB”), a Delaware limited liability company and registered investment adviser, is the Partnership’s General Partner pursuant to the terms of the Fifth Amended and Restated Agreement of Limited Partnership, dated April 27, 2018 (as the same may be amended from time to time, the “LPA”). Pursuant to the LPA, GPB conducts and manages our business. As further described below under “SEC Action, Monitorship, Receivership and Related Matters”, GPB has entered into a management services agreement with GPB’s wholly owned subsidiary Highline Management, Inc. (“Highline”). GPB conducted and managed our business, through Highline, which provides certain management services to assist GPB in fulfilling its duties as the Partnership’s General Partner. However, now that the Partnership is in receivership, GPB and Highline continue to act out their duties under supervision and direction of the Receiver, as defined below.
Until the sale of substantially all of the Partnership’s assets described below under “Sale of Substantially All of the Partnership’s Assets,” we owned and operated multiple retail automotive dealerships, including in most cases, the related real estate, and sought to further develop those operations to increase cash flow and income from operations on behalf of the Limited Partners, as defined below.
Receivership
The Partnership is currently in receivership. As further described below under “SEC Action, Monitorship, Receivership and Related Matters”, on December 8, 2023, the U.S. District Court for the Eastern District of New York (the “EDNY Court”) entered an order (the “Trial Court Receivership Order”), appointing Joseph T. Gardemal III as receiver (the “Receiver”) of the General Partner, the GPB-managed partnerships, including the Partnership, and certain GPB affiliated entities, including Highline (collectively, the “Receivership Entities”). Following an appeal of the Trial Court Receivership Order, on December 3, 2024, the U.S. Court of Appeals for the Second Circuit (the “Second Circuit”) affirmed the Trial Court Receivership Order (the “Receivership Order”), and the receivership (the “Receivership”) took effect.
Pursuant to the Receivership Order, the EDNY Court has taken exclusive jurisdiction and possession of all assets of the Receivership Entities, and the EDNY Court has appointed Mr. Gardemal to serve as the Receiver for the Receivership Entities.
Under the Receivership Order, the Receiver assumed all powers, authorities, rights, and privileges previously possessed by the Receivership Entities and their officers, directors, managers, managing members, and general and limited partners. Since the issuance of the Receivership Order, through the date of this Annual Report, the Partnership has been operating under the direction of the Receiver. In accordance with the Receivership Order, on January 17, 2025, the Receiver filed with the EDNY Court a proposed plan to distribute available Receivership assets to investors and creditors of the Receivership Entities, including the Partnership. The proposed plan of distribution is currently pending before the EDNY Court.
Robert Chmiel and Evan Cutler currently serve as Highline’s Chief Executive Officer and Chief Financial Officer, respectively, under the supervision and direction of the Receiver. As Highline’s executive officers their duties include managing the Partnership.
Sale of Substantially All of the Partnership’s Assets
On September 12, 2021, the Partnership and certain of its direct and indirect subsidiaries entered into a Purchase Agreement (the “Purchase Agreement”) with Group 1 Automotive, Inc., a Delaware corporation (“Group 1”). Pursuant to the Purchase Agreement, the Partnership agreed to sell substantially all of the assets of the Partnership, including, but not limited to the Partnership’s real property (including entities owning real property), vehicles, parts and accessories, goodwill, permits, intellectual property and substantially all contracts, that relate to their automotive dealership and collision center businesses, subject to obtaining the relevant manufacturer
approvals, and excluding certain assets such as cash and certain receivables (the “Group 1 Sale”). The Purchase Agreement was approved by GPB (via Highline) and the Monitor (as defined below).
In November 2021, the Partnership obtained the necessary manufacturer approvals and completed the sale of substantially all of its assets, including real estate, three collision centers, and 27 of its 29 dealerships to Group 1. In December 2021, the Partnership obtained the necessary manufacturer approval and completed the sale of its 28th dealership and the related real estate to a third-party. The aggregate consideration for all of the 28 dealership purchases and real-estate was $824.9 million after taking into account the payoff of floorplan financing and mortgage debt outstanding at the time of the Group 1 Sale. The aggregate consideration was subject to customary post-close adjustments as defined in the Purchase Agreement. See “Note 4. Dispositions” in our Consolidated Financial Statements included in “Item 15. Exhibits, Financial Statement Schedules.” for more information.
The aggregate consideration of $824.9 million for the sale of 28 dealerships and real-estate includes $763.6 million received directly by GPB Prime (as defined below) and was therefore, restricted from distribution to the Partnership or any of its affiliates pursuant to the terms of the M&T Credit Agreement. On December 28, 2021, the Partnership and GPB Prime Holdings, LLC (“GPB Prime”), an entity in which the Partnership holds a 66.5% interest, reached an agreement in principle with M&T Bank Corporation (“M&T Bank”) to allow for a $570.0 million distribution to the Partnership and GPB Holdings II, LP, of which $188.8 million was distributed to GPB Holdings II, LP, an affiliated entity to the Partnership which holds a 33.5% non-controlling interest in GPB Prime.
In January 2022, the Partnership and GPB Prime entered into a Twelfth Amendment (the “Amendment”) to the M&T Credit Agreement. The Amendment, among other things, reaffirmed the agreement in principle which (i) allowed for distribution to the Partnership and GPB Holdings II, LP of $570.0 million, representing a portion of the proceeds received from the Group 1 Sale; (ii) changed the definition of floor plan borrowers to mean Prime Subaru Manchester; (iii) decreased the credit limit that may be borrowed for vehicle floorplan financing from $360.0 million to up to $8.8 million; and (iv) replaced the benchmark interest rates for borrowings from the London Interbank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR) subject to certain adjustments in the Amendment. The M&T Credit Agreement was amended primarily to reflect that we owned only one new vehicle dealership and no longer required the same amount of debt financing as was previously in place. Proceeds from the Group 1 Sale were used in part to repay all other amounts outstanding under the M&T Credit Agreement.
On October 16, 2023, the Partnership transferred the legal ownership of the sole remaining dealership, Prime Subaru Manchester, to Group 1, following the parties’ settlement of litigation.
Plan of Liquidation and the Receivership
Prior to the Receivership taking effect, concurrent with reaching an agreement in principle with M&T Bank on December 28, 2021, to allow for distributions to the Partnership and GPB Holdings II, LP, Highline, on behalf of GPB, caused us to commence a plan to liquidate the Partnership’s remaining net assets and wind up the Partnership (“Plan of Liquidation”). Highline’s management reached its decision to commence the Plan of Liquidation because of, among other things, the advanced stage of the Group 1 Sale, the agreement in principle with M&T Bank to allow for a $570.0 million distribution, and the fact that no further plans to deploy capital in any other investments were contemplated. In accordance with United States generally accepted accounting principles (“U.S. GAAP”), liquidation of the Partnership was thereby determined to be imminent, resulting in the need to adopt the liquidation basis of accounting as of December 28, 2021.
The then-Highline Board of Directors (the “Board”) formally approved the commencement of the Plan of Liquidation at the Board meeting held on February 3, 2022. The Board concluded that it was appropriate to adopt liquidation accounting in accordance with U.S. GAAP for financial reporting purposes, using a “convenience date” of December 31, 2021.
On December 3, 2024, the Receivership took effect, and since that date through the date of this Annual Report, the Partnership has been operating under the direction of the Receiver. In accordance with the Receivership Order, on January 17, 2025, the Receiver filed with the EDNY Court a proposed plan to distribute available Receivership assets to investors and creditors of the Receivership Entities, including the Partnership.
Prior to an approval, if any, by the EDNY Court of the distribution to the Partnership’s investors and creditors, the Partnership cannot predict the timing or amount of any distributions to its limited partners (the “Limited Partners”). In addition, no assurances can be provided that any expected liquidation and winding down will be completed as set forth in the proposed plan filed by the Receiver with
the EDNY Court, and future changes to any such expected date could have a material impact on the Consolidated Financial Statements and the amount, if any, that is ultimately distributed to our Limited Partners. As of the date of this filing, the Partnership continues to believe that December 31, 2025 is the best estimate for the expected liquidation completion date.
SEC Action, Monitorship, Receivership and Related Matters
Federal Matters
On February 4, 2021, the Securities and Exchange Commission (the “SEC”) filed a contested civil enforcement action (the “SEC Action”) against GPB, Ascendant Capital, LLC (“Ascendant”), Ascendant Alternative Strategies, LLC (“AAS”), David Gentile, Jeffry Schneider and Jeffrey Lash in the EDNY Court. No GPB-managed partnership is a named defendant in the SEC Action. The SEC Action alleged several violations of the federal securities laws, including securities fraud. The SEC was seeking disgorgement and civil monetary penalties, among other remedies.
Also, on February 4, 2021, the U.S. Attorney’s Office for the Eastern District of New York (the “USAO”) brought a criminal indictment against Mr. Gentile, Mr. Schneider, and Mr. Lash (the “Criminal Case”). The indictment in the Criminal Case alleges conspiracy to commit securities fraud, conspiracy to commit wire fraud, and securities fraud against all three individuals. Mr. Gentile and Mr. Lash were also charged with two counts of wire fraud. Promptly following his indictment, Mr. Gentile resigned from all management and board positions with GPB and Highline, the GPB-managed funds, including the Partnership, and subsidiaries of the Partnership.
On June 6, 2023, Mr. Lash pled guilty to one count of wire fraud in the Criminal Case pursuant to a plea agreement. On June 10, 2024, the trial in the Criminal Case commenced against Mr. Gentile and Mr. Schneider. The jury in the Criminal Case returned a guilty verdict on all counts against Mr. Gentile and Mr. Schneider on August 1, 2024. Mr. Gentile and Mr. Schneider’s sentencing is scheduled for April 4, 2025. Mr. Lash’s sentencing is scheduled for May 8, 2025.
Appointment of Monitor
On February 11, 2021, the EDNY Court in the SEC Action appointed Joseph T. Gardemal III as an independent monitor over GPB (the “Monitor”) until further order of the EDNY Court (the “Monitor Order”). The EDNY Court appointed the Monitor in response to a request from the SEC, which asserted that the Monitor was necessary to protect investors in light of the alleged misconduct of GPB Capital’s former Chief Executive Officer, David Gentile. In its February 4, 2021 complaint (“the Complaint”) in the SEC Action, the SEC alleged that Mr. Gentile, as the owner and then-Chief Executive Officer of GPB Capital, along with Jeffry Schneider, the owner of Ascendant, GPB’s placement agent, lied to investors about the source of money used to make 8% annualized distribution payments to investors. According to the SEC, Mr. Gentile and others allegedly told investors that the distribution payments were paid exclusively with monies generated by GPB portfolio companies, but as alleged, GPB actually used investor money to pay portions of the annualized 8% distributions. The Complaint further contains allegations that Mr. Gentile and others manipulated financial statements of certain limited partnership funds that GPB manages to perpetuate the deception by giving the false appearance that the funds’ income was closer to generating sufficient income to cover the distribution payments than it actually was. Moreover, the Complaint alleges that Mr. Gentile engaged in undisclosed self-dealing, including by omitting from investor communications certain conflicts of interest and fees and other compensation that he received, totaling approximately $8.0 million.
In support of the Monitor Order, the SEC contended that the Monitor would provide assurances to investors, GPB’s counterparties, and the public that an unbiased and qualified person who was not beholden to Mr. Gentile was vetting any significant transactions and decisions, and looking out for the interests of investors. Accordingly, pursuant to the Monitor Order, GPB was required to (i) grant the Monitor access to all non-privileged books, records and account statements for the GPB-managed funds, including the Partnership, as well as their portfolio companies; and (ii) cooperate fully with requests by the Monitor reasonably calculated to fulfill the Monitor’s duties.
The Monitor Order provided that the Monitor would remain in place until terminated by order of the EDNY Court, and granted the Monitor the authority to approve or disapprove proposed material corporate transactions by GPB, the Partnership and its subsidiaries, extensions of credit by them outside the ordinary course of business, decisions to make distributions to the Limited Partners of the Partnership, or any decision to file any bankruptcy or receiver petition for any of them, among other actions.
On April 14, 2021, the EDNY Court entered an amendment to the Monitor Order (the “Amended Monitor Order”), which provided that, in addition to the SEC and GPB, certain State regulators would receive access to the periodic reports filed by the Monitor pursuant to the Amended Monitor Order.
On May 31, 2022, Mr. Gentile filed a motion in the SEC Action to modify the Amended Monitor Order. In his motion, Mr. Gentile sought a court order to, among other things, (i) narrow the scope of the Monitor’s responsibilities; and (ii) direct the Monitor to ensure that GPB does not sell or otherwise dispose of assets or portfolio companies that the Partnership owns before the completion of a “strategic assessment” to be conducted by three managers Mr. Gentile purported to have appointed to GPB on May 27, 2022. On that same day, May 31, 2022, the Monitor notified Mr. Gentile and GPB that Mr. Gentile’s purported appointment of three new managers to GPB without Monitor approval was in violation of the Amended Monitor Order. Mr. Gentile and GPB were, at that time, given ten (10) business days to cure the violation of the Amended Monitor Order. The cure period expired without any steps having been taken to comply with the Monitor’s notification of violation of the Amended Monitor Order.
On June 13, 2022, the SEC filed by order to show cause in the SEC Action an application and order to (i) convert the existing Monitorship over GPB and the GPB-managed funds to a Receivership, and appoint the Monitor, Joseph T. Gardemal III, as Receiver; and (ii) impose a litigation injunction on cases filed against GPB and the GPB-managed funds (the “Receivership Application”). The Receivership Application and a Proposed Order Appointing Receiver and Imposing Litigation Injunction (the “Proposed Order”) were filed with the EDNY Court with the consent of GPB’s management.
On December 7, 2023, the EDNY Court issued the Trial Court Receivership Order. On December 12, 2023, Mr. Gentile and Mr. Schneider filed notice of appeal with the EDNY Court of the Trial Court Receivership Order, along with an Application for Order to Show Cause to the EDNY Court to stay the Trial Court Receivership Order pending resolution of Mr. Gentile’s and Mr. Schneider’s appeal to the Second Circuit. On December 14, 2023, the EDNY Court denied the Order to Show Cause, but exercised its discretion to grant a temporary stay of the Trial Court Receivership Order to allow Mr. Gentile and Mr. Schneider to seek a stay pending appeal of the Trial Court Receivership Order from the Second Circuit. On December 21, 2023, Mr. Gentile and Mr. Schneider timely filed their motion for a stay pending appeal with the Second Circuit.
Appointment of Receiver
On December 3, 2024, the Second Circuit affirmed the EDNY Court’s Trial Court Receivership Order and lifted the stay, and the Receivership took effect. Pursuant to the Receivership Order, the EDNY Court has taken exclusive jurisdiction and possession of all assets of the Receivership Entities, and the EDNY Court has appointed Mr. Gardemal to serve as the Receiver for the Receivership Entities.
Under the Receivership Order, the Receiver assumed all powers, authorities, rights, and privileges previously possessed by the Receivership Entities and their officers, directors, managers, managing members, and general and limited partners. Since the issuance of the Receivership Order, through the date of this Annual Report, the Partnership has been operating under the direction of the Receiver. The Receiver serves as the board of directors of the Partnership, as discussed in “Item 10. Directors, Executive Officers and Corporate Governance” below.
In accordance with the Receivership Order, on January 17, 2025, the Receiver filed with the EDNY Court a proposed plan to distribute available Receivership assets to investors and creditors of the Receivership Entities, including the Partnership. The proposed plan of distribution is currently pending before the EDNY Court.
State Matters
On May 27, 2020, the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth (“Massachusetts”) filed an Administrative Complaint against GPB for alleged violations of the Massachusetts Uniform Securities Act. No GPB-managed fund is a named defendant. The complaint alleges, among other things, that the offering documents for several GPB-managed funds, including the Partnership, included material misstatements or omissions. Massachusetts is seeks both monetary and administrative relief, including disgorgement and rescission to Massachusetts residents who purchased interest in the GPB-managed funds. This matter is stayed, pending resolution of the Criminal Case.
On February 4, 2021, the seven State securities regulators (from Alabama, Georgia, Illinois, Missouri, New Jersey, New York, and South Carolina, collectively the “States”) each filed suit against GPB. No GPB-managed fund is a named defendant in any of the suits. Several of the suits also named Ascendant, AAS, Mr. Gentile, Mr. Schneider, and Mr. Lash as defendants. The States’ lawsuits allege, among other things, that the offering documents for several GPB-managed funds, including the Partnership, included material misstatements and omissions. The States are seek both monetary and administrative relief, including disgorgement and rescission. The cases brought by the States were stayed pending the conclusion of the Criminal Case. The State of New Jersey voluntarily dismissed its case, without prejudice to re-file it following the conclusion of the Criminal Case.
Corporate Governance of the Partnership Prior to the Appointment of the Receiver
Highline
In January 2020, Highline was formed as a wholly owned subsidiary of GPB, to provide management and operational support services to the GPB-managed partnerships. Highline’s formation followed the completion of an independent special investigation by outside legal counsel as a response to recommendations made by GPB’s predecessor Audit Committee (the “Audit Committee”) to certain allegations brought against the General Partner as described above and in “Item 3. Legal Proceedings.”
The Audit Committee made recommendations which led to a series of restructuring activities undertaken to accomplish a number of objectives including, but not limited to, the: (i) further enhancement of the corporate management structure, with the addition of professionals knowledgeable in the industry and commensurate with the complexity and demands of the business of the Partnership; (ii) formalization, to the extent possible, of the commitment to share human resources, facilities and operating assets among and between the entities that comprise the General Partner and the Partnership; and (iii) further development of the independent oversight of the corporate governance structure and framework to help enable the Partnership to achieve its goals, control risks and compliance with laws, rules and regulations which govern the management of the Partnership. To that end, an initial five-member Board was appointed; the Board was first reduced to three members and, later, to two (all of whom were “independent”, as that term is used in the New York Stock Exchange-listed company manual). To address its oversight and governance, the Board previously established three committees, each consisting entirely of the independent members, an Audit Committee, a Governance Committee and a Compensation Committee, as more fully described below, responsible for overseeing GPB’s management related to the Partnership’s affairs, establishing additional layers of responsibility within the Partnership’s governance structure and enhancing internal controls. As of this filing, the Board is defunct. The Receiver serves as the board of directors of the Partnership. For details, see “Item 10. Directors, Executive Officers and Corporate Governance”.
Pursuant to a Management Service Agreement with GPB (“MSA”), dated January 1, 2020, on GPB’s behalf and now under Receivership supervision and direction, Highline manages all day-to-day functions of the Partnership and its subsidiaries, including management of all underlying assets, human capital, accounting and financial reporting, and operations. Thus, Highline provides independent oversight and review of most aspects of our operations.
A May 2020 amendment to the MSA set forth that the MSA would be in effect for an initial three-year term, effective from January 1, 2020 through December 31, 2023. The MSA was subsequently amended in August 2021, through which the initial term of the MSA was extended to a five-year term, through December 31, 2024, and automatically renews annually thereafter.
Under the MSA, Highline agreed to provide the following services to the Partnership (but not to the remaining businesses owned by the Partnership, which, at the time, were managed day-to-day by their own management teams):
● manage and oversee the day-to-day affairs and operations of the Partnership, including developing corporate strategy and business plans, and managing annual budgets;
● manage, oversee and facilitate the accounting and payment functions, including necessary cash management services with respect to the operations of the Partnership;
● manage and oversee the administration, operations, financial accounting and financial reporting for the Partnership, including managing the preparation of financial statements for the Partnership;
● manage the process for the audits of the financial statements of the Partnership;
● manage and oversee the process of obtaining third-party valuations of the Partnership in accordance with the LPA and the Class A Limited Partnership Units (“Class A”) and Class A-1 Limited Partnership Units (“Class A-1”) Private Placement Memorandum (the “PPM”) dated July 2018;
● communicate regularly and provide written reports (no less frequently than monthly) concerning the financial status and financial performance of the Partnership to GPB, including providing regular (no less frequent than monthly) asset management reports and updated financial models for the Partnership;
● provide periodic market data and information (no less frequent than quarterly) relating to the businesses of the Partnership reasonably requested by GPB for investor marketing and communication purposes;
● review and approve significant transactions approved by GPB’s Acquisition Committee (“Acquisition Committee”);
● review and approve any material change in the investment strategy of the Partnership; and;
● perform such other services as may be reasonably requested by GPB and which are reasonably acceptable to Highline.
Prior to the Receivership taking effect, GPB, through its Acquisition Committee, controlled all major asset acquisition and divestiture decisions concerning the Partnership, subject to the approval by the Board of any such transaction that constituted a significant transaction as described above. Highline’s former responsibilities set forth above encompassed reporting and monitoring distributions to our Limited Partners.
Between the April 14, 2021 Amended Monitor Order and the time when the Receivership took effect, operational and financial decisions made by Highline regarding the affairs of the Partnership were subject to the same authority of the Monitor as decisions made by GPB. Since the affirmation of the Receivership Order by the Second Circuit, and through the date of the filing of this Annual Report, the Partnership has been managed under the direct supervision of the Receiver.
For further discussion of the relationship between GPB and Highline and the corporate governance of the Partnership prior to the appointment of the Receiver, see “Item 10. Directors, Executive Officers and Corporate Governance” elsewhere in this Annual Report.
Our Business
Summary
Prior to the Group 1 Sale, we were a leading operator of automotive franchises and a retailer of new and used vehicles and related products and services. Our dealerships, through both physical retail locations and online (primarily through their individual websites), offered 24 brands of new vehicles and a wide variety of brands of used vehicles. We aimed to offer the brands most desired by consumers in the markets that we served. Our dealerships sold new and used cars and replacement parts, provided vehicle maintenance, warranty, collision and mechanical repair services, arranged related financing for our customers and sold vehicle service contracts, vehicle protection products and credit insurance.
At December 31, 2024, the Partnership no longer operates any dealerships.
Business Plan
Since the entry of the Receivership Order, and through the date of the filing of this Annual Report, the Partnership has been managed under the direct supervision of the Receiver. Pursuant to the Receivership Order, the Receiver is responsible for managing and overseeing the Receivership estate (the Receivership Estate”), including the preparation distributions of available assets to the Partnership’s creditors and investors. Under the Receivership Order, the Receiver intends, among his other duties, to conduct an orderly liquidation of the Partnership and its remaining assets in a manner and over a period of time calculated to maximize their value for investors and the Receivership Estate.
Human Capital Resources
As of December 31, 2024, there were approximately 13 full-time employees working at Highline and GPB combined, supporting operations of the Partnership and its affiliates, excluding the Receiver and his staff. None of these employees are represented by a labor union, and management considers its relations with these employees to be good.
Available Information
Our SEC filings are available to the public from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.
We also make available, through the website of our claims administrator at https://dm.epiq11.com/case/gpbcapital/documents) all reports and amendments to those reports filed or furnished pursuant to Section 12(b) or (g) of The Securities Exchange Act of 1934, as amended (the “Exchange Act”), as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Information contained on the website does not constitute part of this Annual Report. We have included this website address in this Annual Report solely as an inactive textual reference.

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ITEM 1A. RISK FACTORS
Item 1A. Risk Factors
The Partnership’s proportion of the Receivership Estate and changes in its value, the value of the limited partnership interests (the “Units”) and available distributions, if any, to the Limited Partners, may be adversely affected by a number of factors. The risks, uncertainties, and other factors that the Limited Partners and prospective Limited Partnership Unitholders, if any, should consider include, but are not limited to, the following:
RISKS RELATED TO THE PARTNERSHIP AND RECEIVERSHIP ORDER
We are currently under the control of a court-appointed receiver and may not be able to distribute any available assets from the Receivership Estate to our Limited Partners at the times and in the amounts expected, if at all.
On December 3, 2024, the Second Circuit affirmed the EDNY Court’s Trial Court Receivership Order and lifted the stay, and the Receivership took effect. Pursuant to the Receivership Order, the Court has taken exclusive jurisdiction and possession of all assets of the Receivership Entities, and the Court has appointed Mr. Gardemal to serve as the Receiver for the Receivership Entities, including the Partnership.
In accordance with the Receivership Order, on January 17, 2025, the Receiver filed with the EDNY Court a proposed plan to distribute available Receivership assets to investors and creditors of the Receivership Entities, including the Partnership. The proposed plan of distribution is currently pending before the EDNY Court.
We cannot predict the timing or amount of any distributions to the Limited Partners, as uncertainties exist as to the ultimate amount of our expenses associated with implementing the Receivership Order, including the liquidation and winding down of our business, obligations, liabilities and expenses during the liquidation and winding-up process, and the related timing to complete such transactions. Accordingly, there can be no assurances as to the timing or amount of any distributions to the Limited Partners.
We will continue to incur liabilities and expenses that will reduce the proceeds available, if any, for distribution to the Limited Partners.
Claims, liabilities and expenses will continue to be incurred as we seek to liquidate our remaining assets and wind down operations pursuant to the Receivership Order. These expenses could be material and will reduce the amount of proceeds available, if any, for ultimate distribution to the Limited Partners. If we incur obligations, liabilities, expenses and claims in excess of those we currently anticipate, the amount distributed to the Limited Partners may be lower than we currently estimate.
Our Limited Partners may not receive distributions to fully return their invested capital.
There can be no assurance that the Partnership will pay its operating expenses, liabilities, and obligations during the liquidation and wind-down process, and make distributions to the Limited Partners to fully return their paid capital, or any distributions at all in excess of their paid-in capital.
We and the General Partner are involved in material litigation arising from the operations of the Partnership. Resolving litigation disputes can be costly and time consuming.
Although most of the legal proceedings against us, the General Partner and the Receivership Entities are currently stayed (see “Item 3. Legal Proceedings”), we, the General Partner, our portfolio companies, as well as Ascendant and Axiom Capital Management, Inc. (“Axiom”), affiliated broker-dealers, and current and former officers and employees of the foregoing, are involved in regulatory, litigation, arbitration, and other proceedings and investigations, which expose us to potential significant financial loss. These proceedings and investigations arise, for the most part, from the sale and marketing of the Units, including fees paid in connection therewith, and the operation of the Partnership, including the dissemination of information to Limited Partners regarding the Partnership and Partnership distributions. These claims in these proceedings and investigations variously allege fraud and misrepresentation, misuse of investor funds, breach of fiduciary duty and other causes of action and seek substantial damages, injunctive relief, rescission, disgorgement and other remedies.
In addition, we and the General Partner may be subject to additional claims by creditors, including relating to our current or former portfolio companies. We are also advancing funds to former officers and directors, as well as the General Partner, its principals, representatives and affiliates, for costs they incur in connection with their legal defense of such disputes. Resolution of these matters will likely take substantial time, and we cannot predict the results of these matters with certainty. An unfavorable resolution of one or more of these matters could have a material adverse effect, including incurring significant legal fees, expenses, costs and damages by the Partnership, and in turn, reduce or completely deplete otherwise available proceeds for distribution to the Limited Partners. Further, if amounts of reserves or escrows that were established for contingent liabilities that could result from the advance of indemnification expenses are insufficient, such liabilities might ultimately be funded by the Limited Partners to the extent that such Limited Partners have received prior cash distributions from us.
If any of the parties to our future sale agreements default thereunder, or if these sales do not otherwise close, any available proceeds for distributions to the Limited Partners may be delayed or reduced.
Under the Receivership Order, we may seek to enter into binding sale agreements for each of our assets, investments and businesses. The consummation of the potential, future sales may be subject to satisfaction of closing conditions. If any of the transactions contemplated by these future sale agreements do not close because of a buyer default, failure of a closing condition or for any other reason, we will need to locate a new buyer for the assets, which we may be unable to do promptly or at prices or on terms that are as favorable as the original agreement. We will also incur additional costs involved in locating a new buyer and negotiating a new sale agreement for these assets. In the event that we incur these additional costs, any available proceeds for distributions to the Limited Partners would be delayed or reduced.
We may be unable to sell our remaining assets and our remaining lines of business at acceptable prices, or at all.
In accordance with the Receivership Order, we presently intend to sell our remaining assets and lines of businesses. We may, however, may not be able to find purchasers for such assets due to market conditions or we may be unable to obtain acceptable value for these remaining assets and lines of business. As a result, we may be forced to attempt to sell our remaining assets and lines of businesses at a
time or at a value that is unfavorable to us, which would delay or decrease the potential available proceeds for distributions to the Limited Partners.
If our liquidation costs or unpaid liabilities are greater than we expect, any available proceeds for distributions to the Limited Partners may be delayed or reduced.
Before paying any available proceeds to the Limited Partners, we will need to pay or arrange for the payment of all of costs associated with liquidation and winding down under the Receivership Order, including all costs and all valid claims against us (which claims may be unknown to us at this time), which in turn, may result in reduced or delayed payment of any available proceeds for distributions to the Limited Partners.
Our entity value may be adversely affected by the Receivership Order.
Under Receivership Order, the Receiver, among other duties, is responsible for managing and overseeing the liquidation and winding down of the Partnership, which in turn, may inherently adversely affect the Receivership Estate’s value.
We will continue to incur the expenses of complying with public company reporting requirements.
Although we may in the future seek relief from the SEC from certain reporting requirements under the Exchange Act, which may not be granted, until our liquidation and dissolution is complete, we have an obligation to continue to comply with the applicable reporting requirements of the Exchange Act, even if compliance with these reporting requirements is economically burdensome. The expenses we incur in complying with the applicable reporting requirements will reduce any available proceeds for distributions we may pay to the Limited Partners.
The tax treatment of any available proceeds for distributions may vary from one Limited Partner to another. You should consult your own tax advisor instead of relying on the discussions of tax treatment in any of these statements for tax advice.
We have not requested a ruling from the Internal Revenue Service with respect to the anticipated tax consequences of the liquidation, and we will not seek an opinion of counsel with respect to the anticipated tax consequences of any available proceeds for distributions. Tax considerations applicable to particular Limited Partners may vary with and be contingent upon the Limited Partner’s individual circumstances.
If we have not accurately assessed the current realizable values and settlement amounts of our assets and liabilities, respectively, we will not be able to realize amounts equal to their statement of net asset carrying values. This may materially affect future distributions to the Limited Partners, if any.
The valuation of our assets and liabilities presented in our financial statements in accordance with liquidation accounting will be tested as we account for actual disposition and winding down transactions. We apply rules required by U.S. GAAP which may or may not result in deriving an accurate approximate realizable value. Risks are inherent in assessing current value when measured against the outcome of future transactions. Those risks include, without limitation to, the accuracy of:
● our valuation of our existing fixed assets and business units;
● our evaluation of our ability to settle future obligations to third parties;
● our assessment of the current state of litigation and potential litigation against us, including anticipated indemnification costs to be incurred; and
● our assessment of our tax obligations.
Our assessment of these items requires a substantial amount of judgment. This judgment is exercised by our choice of assumptions from which a wide latitude of likely future outcomes are possible. Among these assumptions are:
● our assumption related to the timing and amount of future business revenue streams, whether from sale of business units, or sale of independent assets;
● our assumption related to the duration of the retention of our assets and liabilities until disposition;
● our assumption regarding the timing and transactional costs associated with dispositions;
● our ability to affect timely and efficient closing of disposition transactions;
● our assumption regarding the amount of legal costs we will pay during the liquidation process;
● our assumption regarding the time it will take to complete the liquidation process; and
● our assumption regarding the estimated interest income accrued from investment securities.
The judgments and the resulting valuations taken therefrom form the basis for our realizable value assessment of carrying values on our financial statements. If we fail to accurately assess realizable values in our financial statement presentation, the amounts realized from transactions may be different from amounts in the financial statement presentation, and these amounts may differ in a material amount. If such material differences are found to exist, the amount available for distribution, if any, to the Limited Partners will be materially affected.
Market volatility due to adverse economic and geopolitical conditions or dislocations in the credit markets, could have a material adverse effect on our ability to complete our liquidation and winding down and pay distributions, if any, to the Limited Partners.
The implementation of the Receivership Order may be adversely affected by market and economic volatility experienced by the U.S. and global economies. Such adverse economic and geopolitical conditions may be due to, among other issues, rising inflation and interest rates, volatility in the public equity and debt markets, and international economic and other conditions, including pandemics, geopolitical instability, sanctions and other conditions beyond our control. These current conditions may adversely affect the implementation of the Receivership Order and the amount of distributions we may pay to the Limited Partners, if at all. The implementation of the Receivership Order may be further impacted by disruptions in the financial markets and continued economic uncertainty, and this may have a material effect on the ultimate amount and timing of distributions, if any, received by the Limited Partners.
We face risks associated with security breaches through cyber-attacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology (“IT”) networks and related systems.
We face risks associated with security breaches, whether through cyber-attacks or cyber intrusions over the Internet, malware, computer viruses, attachments to e-mails, persons inside our organization or persons with access to systems inside our organization, and other significant disruptions of our IT networks and related systems. The risk of a security breach or disruption, particularly through cyber-attack or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. Although we make efforts to maintain the security and integrity of these types of IT networks and related systems, and we have invested in reasonable commercial security technology to protect our data and business processes against many of these risks, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging. Even the most well protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases are designed not to be detected and, in fact, may not be detected. Accordingly, we may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, and thus it is impossible for us to entirely mitigate this risk.
A security breach or other significant disruption involving our IT networks and related systems could:
● disrupt the proper functioning of our networks and systems;
● result in misstated financial reports and/or missed reporting deadlines;
● result in our inability to properly monitor our compliance with rules and regulations;
● result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of, proprietary, confidential, sensitive or otherwise valuable information of ours or others, which others could use to compete against us or which could expose us to damage claims by third-parties for disruptive, destructive or otherwise harmful purposes and outcomes;
● require significant management attention and resources to remedy any damages that result; or
● subject us to claims for breach of contract, damages, credits, penalties or termination of leases or other agreements.
Any or all of the foregoing could have a material adverse effect on our ability to successfully execute the execution of the Receivership Order and could reduce the amount and timing of distributions, if any, to the Limited Partners.
Breaches in our data security systems or in systems used by our vendor partners, including cyber-attacks or unauthorized data distribution by employees or affiliated vendors, or disruptions to access and connectivity of our information systems could impact our operations or result in the loss or misuse of proprietary information.
Our information technology systems are important for efficiently managing the liquidation and winding down of our operations, as well as overseeing and managing our remaining assets. We rely on information systems to effectively prepare our consolidated financial and operating data. Our facilities and systems, and those of any third-party service providers, could be vulnerable to security breaches, ransomware, computer viruses, lost or misplaced data, programming errors, human errors, acts of vandalism, or other events. The failure of information systems to perform as designed, the failure to maintain and enhance or protect the integrity of these systems or any security breach or event resulting in the misappropriation, loss, or other unauthorized disclosure of confidential information, whether by us directly or any third-party service providers, could expose us to the risks of litigation and liability, disrupt our liquidation and winding down process, expose us to third-party claims, result in adverse publicity or otherwise adversely affect our financial reporting.
We are subject to privacy, data use and data security regulations, which impact the way we use and handle data. In addition, regulators are proposing and adopting new laws or regulations that could require us to adopt certain cyber security and data handling practices. The changing privacy laws create new individual privacy rights and impose increased obligations on companies handling personal data.
We collect, process, and retain personally identifiable information regarding the Limited Partners and vendors in the normal course of our business. Our internal and third-party systems are subject to risk from hackers or other individuals with malicious intent to gain unauthorized access to our systems. Cyber-attacks are growing in number and sophistication, thus presenting an ongoing threat to systems, whether internal or external, used to operate the business in which we historically operated. Previously, we invested in reasonable commercial security technology to protect our data and business processes against certain of these risks. We also purchase insurance to mitigate the potential financial impact of certain of these risks. Despite the security measures we have in place, our facilities and systems, and those of our third-party service providers, could be vulnerable to security breaches, computer viruses, lost or misplaced data, programming errors, human errors, acts of vandalism, or other events. Any security breach or event resulting in the misappropriation, loss, or other unauthorized disclosure of confidential information, or degradation of services provided by critical business systems, whether by us directly or our third-party service providers, could adversely affect our implementation of the Receivership Order, primarily, the liquidation and winding down process. We could also experience other financial impacts resulting from investigations, litigation, or imposition of penalties or other means.
RISKS RELATED TO THE MANAGEMENT OF THE PARTNERSHIP
We rely on Highline, GPB and its affiliates to manage our operations, including the winding down thereof.
The Partnership is dependent upon the efforts and experience of Highline, GPB and its affiliates to assist in the management, under the supervision and direction of the Receiver, of the Partnership, including the winding down thereof. Various employees of GPB and Highline provide services to the Partnership, which are in addition to and separate from GPB’s services as General Partner of the Partnership. There can be no assurance that such employees will continue to provide services to GPB or will continue to function on the Partnership’s behalf. The future loss of employees of key employees of GPB or Highline providing services to the Partnership could have an adverse effect on the Partnership.
RISKS RELATED TO THE UNITS
Our corporate transfer book is currently closed and any attempted third-party transfer, sale, pledge or assignment of our Class A and Class A-1 Units will not be recognized, and accordingly, our Class A and Class A-1 Units are illiquid, have no public market, and our Limited Partners’ primary source of liquidity is the implementation of the Receivership Order. As we continue to facilitate a distribution plan under the Receivership Order, any amendments to this policy will be posted by the Receiver.
Outside of certain limited contexts, such as permitted transfers upon death and certain litigation settlements, our corporate transfer book is closed and we prohibit recording transfers of our Class A and Class A-1 Units. Class A and Class A-1 were not transferable, saleable, pledgeable, or assignable on the Partnership’s books. Our Units are not listed on any securities exchange or interdealer quotation system and there is no intention to seek such a listing. The absence of a market for the Units means that there is no opportunity to sell your Units. Units should be viewed solely as long-term, illiquid investments. Accordingly, Limited Partners should be prepared to hold their investments in us for the long-term with the expectation that any returns will be realized only from the implementation of the plan of distribution.
Investments in our Units may have adverse tax consequences.
With limited exceptions designed to meet the needs of U.S. tax exempt investors and certain non-U.S. investors, the Partnership generally expects to be treated as a partnership for U.S. federal income tax purposes. Each Limited Partner, in determining its U.S. federal income tax liability, will take into account its allocable share of the Partnership’s income, gain, loss, deduction and credits, without regard to whether it has received distributions from the Partnership. The Partnership anticipates that it may incur income that would be treated as unrelated business taxable income under Sections 512 and 514 of the Internal Revenue Code of 1986, as amended. Accordingly, Unitholders that are tax exempt entities, including qualified retirement plans (stock, bonus, pension, or profit-sharing plans described in IRC§401(a)) and individual retirement accounts (“IRAs”), are urged to consult their tax advisors concerning the U.S. Federal, state and local income and other tax consequences that may result from their investment in the Partnership.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B. Unresolved Staff Comments
None.

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ITEM 2. PROPERTIES
Item 2. Properties
As of December 31, 2024, we owned one property. This property is located in New York. The property consists primarily of an automotive showroom, service facility, supply facility, storage lot, parking lot and office.

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ITEM 3. LEGAL PROCEEDINGS
Item 3. Legal Proceedings
For discussion of our legal proceedings, refer to “Note 11. Commitments and Contingencies” within our Notes to the Consolidated Financial Statements.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4. Mine Safety Disclosures
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5. Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Market Information
No public market currently exists for our Units. Pursuant to the Receivership Order, our Units may not, generally, be sold, transferred, assigned, pledged or otherwise disposed, and any such disposal will not be recognized by the Partnership.
Holders
As of December 31, 2024, the approximate number of holders of Class A Units was 3,614, of Class A-1 Units was 2,459, of Class B Units was 502, and of Class B-1 Units was 336.
As of December 31, 2024, and through the date of this filing, the Partnership has 7,889.94 Class A Limited Partnership Units, 3,537.52 Class A-1 Limited Partnership Units, 1,505.14 Class B Limited Partnership Units and 587.97 Class B-1 Limited Partnership Units issued and outstanding. All classes have the same rights and the only distinction between classes are the Managerial Assistance fees and Selling and Service fees which are outlined in “Item 13. Certain Relationships and Related Transactions, and Director Independence”.
Distributions and Redemptions
There were no contributions for the years ended December 31, 2024 and 2023. The Partnership does not currently expect to pay cash distributions in the future, other than, potentially, in connection with the Receivership Estate.
There were no redemptions for the years ended December 31, 2024 and 2023. All previous redemption requests have been cancelled pursuant to the plan of distribution pursuant to the Receivership Order filed on January 17, 2025.
During the year ended December 31, 2024, there were no state tax withholding distributions made on behalf of the Limited Partners.
During the year ended December 31, 2023, there were state tax withholding distributions made on behalf of the Limited Partners of $1.6 million which is reflected as a reduction of liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statement of Net Assets in Liquidation and $0.2 million of which was in excess of the corresponding liability recorded and reflected as tax distributions made in excess of liabilities recorded on the Consolidated Statement of Changes in Net Assets in Liquidation.
Equity Compensation Plan Information
None.
Recent Sales of Unregistered Securities
None.
Purchase of Equity Securities by the Issuer and Affiliated Purchasers
None.

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ITEM 6. SELECTED FINANCIAL DATA
Item 6. [Reserved]

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and related notes and the other financial information included elsewhere in this Annual Report. This discussion contains forward-looking statements that involve significant risks and uncertainties. As a result of many factors, such as those set forth under “Item 1A. Risk Factors” and elsewhere in this Annual Report, our actual results may differ materially from those anticipated in these forward-looking statements.
Financial Condition, Results of Operations, and Liquidity
OVERVIEW
The Partnership is a holding company which was organized as a Delaware limited partnership on May 27, 2013, and commenced operations on that date. As further described below, the Partnership has sold substantially all of its assets and is now in receivership.
GPB, a Delaware limited liability company and registered investment adviser, is the Partnership’s General Partner pursuant to the terms of the LPA. Pursuant to the LPA, GPB conducts and manages our business. As further described in “Item 1. Business - SEC Action, Monitorship, Receivership and Related Matters”, GPB has entered into a management services agreement with GPB’s wholly owned subsidiary Highline. GPB conducted and managed our business, through Highline, which provides certain management services to assist GPB in fulfilling its duties as the Partnership’s General Partner. However, now that the Partnership is in receivership, GPB and Highline continue to act out their duties under supervision and direction of the Receiver.
Receivership
The Partnership is currently in receivership. As further described in “Item 1. Business - SEC Action, Monitorship, Receivership and Related Matters”, on December 8, 2023, the EDNY Court entered the Trial Court Receivership Order, appointing Joseph T. Gardemal III as the Receiver of the General Partner, the GPB-managed partnerships and the Receivership Entities. Following an appeal of the Trial Court Receivership Order, on December 3, 2024, the U.S. Court of Appeals for the Second Circuit affirmed the Receivership Order and the Receivership took effect.
Pursuant to the Receivership Order, the EDNY Court has taken exclusive jurisdiction and possession of all assets of the Receivership Entities, and the EDNY Court has appointed Mr. Gardemal to serve as the Receiver for the Receivership Entities.
Under the Receivership Order, the Receiver assumed all powers, authorities, rights, and privileges previously possessed by the Receivership Entities and their officers, directors, managers, managing members, and general and limited partners. Since the issuance of the Receivership Order, through the date of this Annual Report, the Partnership has been operating under the direction of the Receiver. In accordance with the Receivership Order, on January 17, 2025, the Receiver filed with the EDNY Court a proposed plan to distribute available Receivership assets to investors and creditors of the Receivership Entities, including the Partnership. The proposed plan of distribution is currently pending before the EDNY Court.
Robert Chmiel and Evan Cutler currently serve as Highline’s Chief Executive Officer and Chief Financial Officer, respectively, under the supervision and direction of the Receiver. As Highline’s executive officers, their duties include managing the Partnership, including the wind-down thereof.
Until the sale of substantially all of the Partnership’s assets described below under “Sale of Substantially All of the Partnership’s Assets,” we owned and operated multiple retail automotive dealerships primarily in the northeastern United States, including in most cases their related real estate, and sought to further develop their operations to increase cash flow and income from operations on behalf of the Limited Partners. As of December 31, 2024, the Partnership does not own or operate any dealerships.
Sale of Substantially All of the Partnership’s Assets
On September 12, 2021, the Partnership and certain of its direct and indirect subsidiaries entered into a Purchase Agreement with Group 1. Pursuant to the Purchase Agreement, the Partnership agreed to sell substantially all of the assets of the Partnership, including, but not limited to the Partnership’s real property (including entities owning real property), vehicles, parts and accessories, goodwill, permits,
intellectual property and substantially all contracts, that relate to their automotive dealership and collision center businesses, subject to obtaining the relevant manufacturer approvals, and excluding certain assets such as cash and certain receivables. The Purchase Agreement was approved by GPB (via Highline) and the Monitor (as defined below).
In November 2021, the Partnership obtained the necessary manufacturer approvals and completed the sale of substantially all of its assets, including real estate, three collision centers, and 27 of its 29 dealerships to Group 1. In December 2021, the Partnership obtained the necessary manufacturer approval and completed the sale of its 28th dealership and the related real estate to a third-party. The aggregate consideration for all of the 28 dealership purchases and real-estate was $824.9 million after taking into account the payoff of floorplan financing and mortgage debt outstanding at the time of the Group 1 Sale. The aggregate consideration was subject to customary post-close adjustments as defined in the Purchase Agreement.
The foregoing description of the Purchase Agreement is a summary only and is qualified in its entirety by reference to the complete text of the Purchase Agreement, which is filed as Exhibit 2.1 in “Item 15. Exhibits, Financial Statement Schedules.”
Included in the aggregate consideration of $824.9 million for the sale of 28 dealerships and real-estate was $763.6 million received directly by GPB Prime and was therefore, restricted from distribution to the Partnership or any of its affiliates pursuant to the terms of the M&T Credit Agreement. On December 28, 2021, the Partnership and GPB Prime reached an agreement in principle with M&T Bank to allow for a distribution to the Partnership and GPB Holdings II, LP, of a sum of $570.0 million of which $188.8 million was distributed to GPB Holdings II, LP, an affiliated entity to the Partnership which holds a 33.5% non-controlling interest in GPB Prime.
In January 2022, the Partnership and GPB Prime entered into an Amendment to the M&T Credit Agreement. The Amendment, among other things, reaffirmed the agreement in principle which (i) allowed for distribution to the Partnership and GPB Holdings II, LP of $570.0 million, representing a portion of the proceeds received from the Group 1 Sale; (ii) changed the definition of floor plan borrowers to mean Prime Subaru Manchester; (iii) decreased the credit limit that may be borrowed for vehicle floorplan financing from $360.0 million to up to $8.8 million; and (iv) replaced the benchmark interest rates for borrowings from LIBOR to SOFR subject to certain adjustments in the Amendment. The M&T Credit Agreement was amended primarily to reflect that we only owned one new vehicle dealership and no longer required the same amount of debt financing as was previously in place. Proceeds from the Group 1 Sale were used in part to repay all other amounts outstanding under the M&T Credit Agreement.
On October 16, 2023, GPB Prime transferred legal ownership of the sole remaining dealership, Prime Subaru Manchester, to Group 1, following the parties’ settlement of litigation. Consideration of $33.4 million purchase price was placed into an escrow account, which was released to the GPB Prime in April 2022. The net consideration received for the ownership transfer of Prime Subaru Manchester, including the initial closing consideration, was $34.5 million.
Plan of Liquidation and the Receivership
Prior to the Receivership taking effect, concurrent with reaching an agreement in principle with M&T Bank on December 28, 2021, to allow for distributions to the Partnership and GPB Holdings II, LP, Highline, on behalf of GPB, caused us to commence a plan to liquidate the Partnership’s remaining net assets and wind up the Partnership. Highline’s management reached its decision to commence the Plan of Liquidation because of, among other things, the advanced stage of the Group 1 Sale, the agreement in principle with M&T Bank to allow for the $570.0 million distribution, and that no further plans to deploy capital in any other investments were contemplated. In accordance with U.S. GAAP, liquidation of the Partnership was thereby determined to be imminent, resulting in the need to adopt the liquidation basis of accounting as of December 28, 2021.
The then-Board formally approved the commencement of the Plan of Liquidation at a Board meeting held on February 3, 2022. The Board concluded that it was appropriate to adopt liquidation accounting in accordance with U.S. GAAP for financial reporting purposes, using a “convenience date” of December 31, 2021.
On December 3, 2024, the Receivership took effect, and since that date through the date of this Annual Report, the Partnership has been operating under the direction of the Receiver. In accordance with the Receivership Order, on January 17, 2025, the Receiver filed with the EDNY Court a proposed plan to distribute available Receivership assets to investors and creditors of the Receivership Entities, including the Partnership.
Prior to an approval, if any, by the EDNY Court of the distribution to the Partnership’s investors and creditors, the Partnership cannot predict the timing or amount of any distributions to its Limited Partners. In addition, no assurances can be provided that any expected liquidation and winding down will be completed as set forth in the proposed plan filed by the Receiver with the EDNY Court, and future changes to any such expected date could have a material impact on the Consolidated Financial Statements and the amount, if any, that is ultimately distributed to our Limited Partners. As of the date of this filing, the Partnership continues to believe that December 31, 2025 is the best estimate for the expected liquidation completion date.
Following the Implementation of the Plan of Liquidation and the Receivership
The Board’s approval to commence the Plan of Liquidation and to dissolve substantially all of the net assets of the Partnership on December 28, 2021, requires our financial statements to be prepared in accordance with the liquidation basis of accounting as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 205-30 Financial Statement Presentation, Liquidation Basis of Accounting (“ASC 205-30”).
The liquidation basis of accounting differs significantly from the going concern basis, as summarized below.
Under the liquidation basis of accounting, the Consolidated Balance Sheet and Consolidated Statements of Operations, Partners’ Capital and Cash Flows are no longer presented.
The liquidation basis of accounting requires a statement of net assets in liquidation, a statement of changes in net assets in liquidation and all disclosures necessary to present relevant information about our expected resources throughout the liquidation period. The liquidation basis of accounting may only be applied prospectively from the date liquidation becomes imminent and the initial statement of changes in net assets in liquidation may present only changes in net assets that occurred during the period since that date.
Our consolidated financial statements as of and for the years ended December 31, 2024 and 2023, include Consolidated Statements of Net Assets in Liquidation as of December 31, 2024 and 2023, Consolidated Statements of Changes in Net Assets in Liquidation for the years ended December 31, 2024 and 2023, and all disclosures necessary to present relevant information about our expected resources in liquidation.
Under the liquidation basis of accounting, our assets are measured at their estimated net realizable value, or liquidation value, which represents the amount of their estimated cash proceeds or other consideration from liquidation, based on current contracts, estimates and other indications of sales value, and includes assets held for sale. In developing these estimates, we utilized the forecasts generated by our management. Estimates for the liquidation value of Prime Subaru Manchester, prior to the transfer in October 2023, were determined through a combination of historical and projected business cash flows. All estimates by nature involve a large degree of judgement and sensitivity to the underlying assumptions.
Under the liquidation basis of accounting, we recognize liabilities as they would have been recognized under the going concern basis as adjusted for the timing assumptions related to the liquidation process and they will not be reduced to expected settlement values prior to settlement. Our liabilities are derecognized when we pay the obligation or when we are legally released from being the primary obligor under the liability.
The valuation of our assets and liabilities, as described above, represents estimates, based on present facts and circumstances, of the net realizable value of the assets and costs associated with carrying out the Plan of Liquidation. The actual values and costs associated with carrying out the Plan of Liquidation may differ from amounts reflected in the accompanying consolidated financial statements because of the Plan of Liquidation’s inherent uncertainty. These differences may be material. In particular, these estimates will vary with the length of time necessary to complete the Plan of Liquidation. It is currently anticipated that liquidation will be completed by December 31, 2025, however, no assurances can be provided that this date will be met. This date was determined through management consultation with the Receiver and GPB’s external counsel and contemplates such matters as the timing of the approval of the distribution plan, the timing of Mr. Gentile’s criminal trial, and outcome and the settling of pending litigation as the main components driving the estimate on timing of complete liquidation. Any delays in the timing of the resolution of these matters could significantly delay both the completion date and the amounts available to be distributed upon liquidation. In addition, this date assumes that if the Partnership continues to be responsible for costs relating to matters expected to occur after the anticipated liquidation completion date of December 31, 2025, primarily the anticipated indemnification costs, such estimated amounts would be reserved for and managed by GPB to pay such obligations. The current projection model used to estimate future costs during liquidation includes consideration of this scenario.
Net assets in liquidation represents the estimated liquidation value to holders of Units upon liquidation. It is not possible to predict with certainty the timing or aggregate amount which may ultimately be distributed to our Limited Partners and no assurance can be given that the distributions will equal or exceed the estimate presented in these Consolidated Financial Statements.
Results of Operations
In light of the adoption of liquidation basis of Accounting as of December 31, 2021, comparisons of the year ended December 31, 2024 to the prior year ended December 31, 2023 are not meaningful, and therefore we no longer discuss the changes in results of our operations.
On October 16, 2023, GPB Prime transferred ownership of the sole remaining dealership, Prime Subaru Manchester, to Group 1, following the parties’ settlement of litigation. The net proceeds of $34.4 million from the sale of Prime Subaru Manchester were received in 2022, in advance of the final transfer in October 2023.
Liquidity and Capital Resources
Since the adoption of our Plan of Liquidation, our ability to meet our obligations is contingent upon the disposal of our assets in accordance with the Plan of Liquidation. We had $527.4 million in cash on hand, cash equivalents and investment securities, and $2.2 million in restricted cash as of December 31, 2024. We expect that this will be adequate to meet our obligations, pursuant to our Plan of Liquidation.
Contractual Payment Obligations
The following table summarizes our payment obligations under certain contracts as of December 31, 2024, that obligate the Partnership to contractual payments. The amounts presented are based upon, among other things, the terms of any relevant agreements. Future events that may occur related to payment obligations could cause actual payments to differ significantly from these amounts.
(Dollars in thousands)
Payments Due by Period
More Than 5
Less than 1 Year
1 - 3 Years
3 - 5 Years
Years (2030 and
Total
(2025)
(2026 and 2027)
(2028 and 2029)
thereafter)
Notes payable - related party
24,267
24,267
-
-
-
Total
$
24,267
$
24,267
$
-
$
-
$
-
Additionally, $9.2 million of interest has been accrued associated with these notes payable - related party and is included as a component of the $24.3 million reflected in the table above.
Holding Company Status
The Partnership is a holding company that does not conduct any business operations for its own.
Critical Accounting Estimates
The preparation of financial statements in conformity with U.S. GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and reported amounts of revenues and expenses at the date of the financial statements. Certain accounting policies require us to make difficult and subjective judgments on matters that are inherently uncertain. The following accounting policies involve critical accounting estimates because they are particularly dependent on assumptions made by management. While we have made our best estimates based on facts and circumstances available to us at the time, different estimates could have been used in the current period. Changes in the accounting estimates we used are reasonably likely to occur from period to period, which may have a material impact on the presentation of our financial condition in liquidation.
Our most critical accounting estimates include those related to reserves for potential litigation and our liquidation accounting estimates including: the date on which we expect the liquidation process to be complete, the estimated legal costs expected to be incurred during
the liquidation process, estimated settlement proceeds of our assets, and estimated settlement amounts of our liabilities. We review our estimates, judgments and assumptions periodically and reflect the effects of revisions in the period that they are deemed to be necessary. We believe that these estimates are reasonable, however, the actual results could differ from the estimates and assumptions made in the preparation of the accompanying Consolidated Financial Statements.
Reserves for potential litigation
We, our General Partner, and our subsidiaries are involved in a number of regulatory, litigation, arbitration and other proceedings or investigations, and many of those matters expose us to potential financial loss and the resolutions of which could impact our estimated liquidation completion date. We record a liability when we believe that it is probable a loss will be incurred and the amount can be reasonably estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the reasonably possible loss. We evaluate developments in our legal matters that could affect the amount of liability that has been previously accrued, if any, and the matters and related reasonably possible losses disclosed, and make adjustments as appropriate. Significant judgement is required to determine both the likelihood of there being a resolution and the estimated amount of a loss related to such matters.
Liquidation Basis of Accounting
As of December 31, 2021, the Partnership transitioned from a going concern basis of accounting to a liquidation basis of accounting in accordance with U.S. GAAP. Under the liquidation basis, the remeasurement of the Partnership’s assets and liabilities includes management’s estimates and assumptions of: (i) income to be generated from the remaining assets until the anticipated date of sale; (ii) sales proceeds to be received for these assets at the time of sale; (iii) operating expenses to be incurred during the liquidation period; and (iv) amounts required to settle liabilities. The estimated liquidation values for assets and liabilities derived from future operations and asset sales and the settlement of estimated liabilities are reflected on the Consolidated Statements of Net Assets in Liquidation in “Item 15. Exhibits, Financial Statement Schedules.” The actual amounts realized could differ materially from the estimated amounts.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended, and are not required to provide the information under this item.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8. Financial Statements and Supplementary Data
The consolidated financial statements and notes thereto required by this item begin on page as listed in “Item 15. Exhibits, Financial Statement Schedules.” of Part IV of this Form 10-K and are incorporated herein by reference.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
None.

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ITEM 9A. CONTROLS AND PROCEDURES
Item 9A. Controls and Procedures
Evaluation of Disclosure Control and Procedures
In connection with the preparation and filing of our prior reports on Form 10-K and Form 10-Q, we determined that there were material weaknesses in our internal control over financial reporting (“ICFR”), as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The underlying circumstances that led to this conclusion related in part to the events that led to the U.S. government’s criminal prosecution of Mr. Gentile and the governance changes that were required in response, and these matters contributed to our determination that our disclosure controls and procedures were not effective in providing reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii) accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. We have continued to make this same determination in Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed thereafter.
Since this initial determination was made, we have worked to address and remediate these ICFR and disclosure controls weaknesses, and we believe that they have been substantially addressed or eliminated through the sale of substantially all of our operations as of December 31, 2024. However, in view of the Partnership being in a process of liquidation (with no material non-cash assets left in its portfolio), and with the Partnership also now in Receivership, we have determined that it would not be in the best interests of the Partnership and the holders of its Units to spend the resources on the third-party testing and monitoring processes that would be needed for us to finalize and confirm a conclusion that these weaknesses have been remediated and that our ICFR and disclosure controls and procedures are effective. As a result, when we evaluated the effectiveness of our disclosure controls and procedures as of December 31, 2024 (under the supervision and with the participation of the Receiver), we determined that our disclosure controls and procedures were not effective as of such date.
Management’s Annual Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate ICFR, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Because of its inherent limitations, ICFR may not prevent or detect material misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. As further described directly above under “Evaluation of Disclosure Control and Procedures,” we determined that there were material weaknesses in our ICFR in connection with the preparation and filing of our prior reports on Form 10-K and Form 10-Q.
We have worked to address and remediate these ICFR and disclosure controls weaknesses, and we believe that they have been substantially addressed or eliminated through the sale of substantially all of our operations as of December 31, 2024. However, in view of the Partnership being in a process of liquidation (with no material non-cash assets left in its portfolio), and with the Partnership also now in Receivership, we have determined that it would not be in the best interests of the Partnership and the holders of its Units to spend the resources on the third-party testing and monitoring processes that would be needed for us to finalize and confirm a conclusion that these weaknesses have been remediated and that our ICFR is effective. As a result, when we evaluated the effectiveness of our ICFR as of December 31, 2024, based on the framework in Internal Control - Integrated Framework-2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission, under the supervision and with the participation of the Receiver and our Chief Executive Officer and Chief Financial Officer, we concluded that our ICFR was not effective as of such date because of the material weaknesses in our system of ICFR that we had previously identified.
Changes in Internal Control over Financial Reporting
There were no changes in our ICFR during the three months ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, our ICFR.

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ITEM 9B. OTHER INFORMATION
Item 9B. Other Information
None.

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10. Directors, Executive Officers and Corporate Governance
MANAGEMENT OVERVIEW
As previously discussed, pursuant to the Receivership Order, the Partnership is managed by GPB, through its affiliation with Highline, under the supervision and direction of the Receiver. Prior to the appointment of the Receiver, the main governing bodies that managed and made decisions for the Partnership were the Acquisition Committee and Highline, including Highline’s executive officers and its now defunct Board, discussed below. The Acquisition Committee and Highline each performed distinct functions on behalf of the Partnership, as outlined below.
Upon the appointment of the Receiver, all powers previously possessed by Highline, GPB, the Acquisition Committee, the Receivership Entities and their officers, directors, managers, agents and affiliates were suspended, except to the extent as granted by the Receiver. Under the Receivership Order, the Receiver has powers, authorities, rights, and privileges previously possessed by Highline, GPB, the Acquisition Committee, the Receivership Entities, and their officers, directors, managers, managing members, and the general and limited partners of Highline, GPB, and the Receivership Entities.
The Receiver re-appointed each of the individuals listed below to serve under his direct supervision as executive officers. The term of office of each of these executive officers continues until his resignation or removal by the Receiver. The following table sets forth information concerning the executive officers, including their ages, positions and tenure, as of the date hereof.
Name
Age
Officer since
Position
Robert Chmiel
GPB Chief Executive Officer and Chief Financial Officer and Highline Chief Executive Officer
Evan Cutler
Highline Chief Financial Officer
Michael Emanuel
GPB and Highline General Counsel and Chief Compliance officer
Joseph T. Gardemal III (1)
Receiver
1. Mr. Gardemal is not an executive officer pursuant to Item 401 of Regulation S-K. Pursuant to the Receivership Order, Mr. Gardemal, in his capacity as the Receiver of the Partnership, serves in the effect function of an executive officer and possesses the powers, authorities, rights, and privileges previously held by the former management of the Partnership.
Robert Chmiel, GPB and Highline Chief Executive Officer and GPB Chief Financial Officer
Robert Chmiel, 64, Chief Executive Officer (since July 2021), Interim Chief Executive Officer (from February 2021 to June 2021) and Chief Financial Officer of GPB (since November 2019), leads all aspects of the firm, including investment management, accounting and finance, legal and compliance, and communications and investor relations. Mr. Chmiel has extensive experience in due diligence and SEC filings for publicly traded companies. His experience also includes six years of various finance roles with The Walt Disney Company, most notably as a senior member of the executive team which launched Disney Online. Most recently, he was the CFO of Orion Resource Partners, a $4 billion New York-based commodity-themed investment manager. Prior to Orion, Mr. Chmiel was the CFO and Head of Marketing for Pia Capital Management, a Greenwich, CT- based global macro hedge fund. Before Pia, Mr. Chmiel was the Managing Principal of RC Financial Group LLC, a financial consulting firm which specialized in due diligence services, capital raising, marketing and CFO services to hedge funds, private equity funds as well as to small and micro-cap public companies. Mr. Chmiel holds a Master of Business Administration from the Wharton School of Business at the University of Pennsylvania and a Bachelor of Arts in Economics from the College of the Holy Cross.
Michael Emanuel, GPB General Counsel and Chief Compliance Officer
Michael Emanuel, 58, is the General Counsel and Chief Compliance Officer of GPB (since August 2020) and is responsible for all legal, compliance and regulatory functions. Mr. Emanuel joined GPB from Stroock & Stroock & Lavan, a New York-based law firm where he served as a partner (March 2018 - July 2020). There, he advised clients in matters relating to fund, adviser and family office legal, compliance and regulatory infrastructure. Mr. Emanuel has focused his career practice on investment adviser and investment company regulation, the representation of investment funds and investment advisors in the formation, structuring, capitalization and operations of investment funds and management businesses. Prior to becoming a law firm partner, Mr. Emanuel spent over 20 years as a general counsel, chief compliance officer, chief operating officer and senior vice president at leading registered investment management firms, family offices, global banks and other financial services and law firms, most recently at Eagle Investment Solutions (from June 2010 - March 2018). Mr. Emanuel received his Juris Doctor degree from Fordham University and his Bachelor of Science in Accounting from Washington University.
Evan Cutler, Highline Chief Financial Officer
Mr. Cutler, 40, Chief Financial Officer (since January 2022), previously served as Senior Controller of Highline, and formerly GPB, since April 2019. Mr. Cutler leads all financial aspects of Highline, including finance and accounting, financial reporting, taxes, and assists in all other areas of Highline’s business. Mr. Cutler was previously Controller of Capstone Investment Advisors from 2015 to 2018, where he led the fund accounting group and was responsible for P&L, review and monitoring of operations functions, month end close processes, regulatory filings, financial statements, taxes, investor due diligence meetings and new fund launches from an accounting and operational perspective. Mr. Cutler also was a member and presenter to the valuation committee of Capstone Investment Advisors. Mr. Cutler has 15 years total experience in the investment management industry, is a Certified Public Accountant licensed in the state of New Jersey, and has a B.S. from Montclair State University.
Joseph T. Gardemal III, Receiver
Mr. Gardemal, 58, serves as the Receiver of the Partnership, and is responsible for overseeing and managing the Receivership Estate pursuant to the Receivership Order. Mr. Gardemal is a managing director at Alvarez & Marsal, a position he has held since August 2006. Mr. Gardemal is a Certified Public Accountant licensed in Louisiana, Washington D.C., Maryland, and Virginia and received his Bachelor in Business Administration (Accounting) From Loyola University New Orleans.
No family relationship exists among any of the executive officers.
Board Committees
Pursuant to the Receivership Order, the Receiver now performs the functions of the compensation, governance and audit committees. As a result, the former Board and committees have been disbanded.
Involvement in Certain Legal Proceedings
None of the executive officers have been involved in any legal proceeding listed in Item 401(f) of Regulation S-K in the past 10 years.
Director Independence
As discussed below, we do not currently have a board of directors.
Code of Ethics
GPB operates under a Code of Ethics, reviewed at least one time per year, which is designed to prevent, among other things, improper personal trading; identify conflicts of interest; and provide a means to resolve any actual or potential conflicts.
Insider Trading
Outside of certain limited contexts, such as permitted transfers upon death and certain litigation settlements, the Partnership’s corporate transfer book is closed and we prohibit recording transfers of our Partnership units. Our management, employees and their affiliates, as well as the Receiver, each do not own or trade in Partnership units. As a result of the foregoing, the Partnership has not adopted formal insider trading policies and procedures governing the purchase, sale and/or other dispositions of the Partnership’s units.
Corporate Governance of the Partnership Prior to the Appointment of the Receiver
Prior to the appointment of the Receiver, GPB conducted and managed our business, with Highline overseeing the day-to-day functions of the Partnership and its subsidiaries, including management of all underlying assets, human capital, accounting and financial reporting, and operations. GPB’s main governing body was the Acquisition Committee. GPB, through its Acquisition Committee, controlled all major asset acquisition and divestiture decisions concerning the Partnership, and Highline was responsible for reporting and monitoring distributions to our Limited Partners. Before the Receivership took effect, but following the April 14, 2021 Amended Monitor Order issued by the EDNY Court, Highline’s operational and financial decisions regarding the affairs of the Partnership were subject to Mr. Gardemal’s authority and supervision as the Monitor of the Partnership.
The following overview reflects the corporate governance of the Partnership prior to the appointment of the Receiver:
Acquisition Committee
Prior to the Receivership taking effect, the Acquisition Committee comprised two members appointed by GPB. GPB controlled the size of the Acquisition Committee, and could nominate and remove Acquisition Committee members at its sole discretion. Prior to the Receivership taking effect, the members of the Acquisition Committee were Robert Chmiel and Michael Emanuel. Nico Gutierrez resigned as a member of the Acquisition Committee in June 2024. Pursuant to letter agreements with us: (i) the terms of the Acquisition Committee members were automatically renewed for a term of one year, and provided that either party may terminate the relationship at any time, (ii) the Acquisition Committee members were bound to use their best judgment when making recommendations on acquisitions and divestiture decisions for us, and (iii) and the Acquisition Committee members were required to attend committee meetings.
The Acquisition Committee governing charter set forth the authority and responsibilities of the Acquisition Committee, which included:
● Understanding our mission and organizational goals and how they underscore and support the objectives of the portfolio companies;
● Reviewing and advising on proposed acquisitions based on the consistency, viability and fit of those proposed acquisitions with our acquisition and operational criteria; and
● Voting on acquisitions and divestitures, which required the approval of at least 75% of the Acquisition Committee members in order to proceed with a particular investment decision.
The Acquisition Committee asset acquisition and divestiture decisions concerning significant transactions were subject to required approval by a majority of the independent Directors of the Board. In December 2024, in accordance with the Receivership, the Acquisition Committee was disbanded.
The Acquisition Committee members were not independent and were affiliated with either GPB or Highline. The members were not separately compensated for their service on the Acquisition Committee. The below chart reflects the Acquisition Committee make up and their tenure on the committee:
Name
Position
Tenure
Robert Chmiel
Committee Chair Person
March 2021 - December 2024
Michael Emanuel
Committee Member
December 2021- December 2024
Nico Gutierrez
Committee Member
December 2021- June 2024
Highline Management Services Agreement
Pursuant to the MSA, dated January 1, 2020, on GPB’s behalf and now under Receivership supervision and direction, Highline manages all day-to-day functions of the Partnership and its subsidiaries, including management of all underlying assets, human capital, accounting and financial reporting, and operations. Thus, Highline provides independent oversight and review of most aspects of our operations.
A May 2020 amendment to the MSA set forth that the MSA would be in effect for an initial three-year term, effective from January 1, 2020 through December 31, 2023. The MSA was subsequently amended in August 2021, through which the initial term of the MSA was extended to a five-year term, through December 31, 2024, and automatically renews annually thereafter.
Under the MSA, Highline agreed to provide the following services to the Partnership (but not to the remaining businesses owned by the Partnership, which are managed day-to-day by their own management teams):
● manage and oversee the day-to-day affairs and operations of the Partnership, including developing corporate strategy and business plans, and managing annual budgets;
● manage, oversee and facilitate the accounting and payment functions, including necessary cash management services with respect to the operations of the Partnership;
● manage and oversee the administration, operations, financial accounting and financial reporting for the Partnership, including managing the preparation of financial statements for the Partnership;
● manage the process for the audits of the financial statements of the Partnership;
● manage and oversee the process of obtaining third-party valuations of the Partnership in accordance with the LPA and the Class A and Class A-1 PPM dated July 2018;
● communicate regularly and provide written reports (no less frequently than monthly) concerning the financial status and financial performance of the Partnership to GPB, including providing regular (no less frequent than monthly) asset management reports and updated financial models for the Partnership;
● provide periodic market data and information (no less frequent than quarterly) relating to the businesses of the Partnership reasonably requested by GPB for investor marketing and communication purposes;
● review and approve significant transactions approved by the Acquisition Committee;
● review and approve any material change in the investment strategy of the Partnership; and;
● perform such other services as may be reasonably requested by GPB and which are reasonably acceptable to Highline.
Prior to the Receivership taking effect, GPB, through its Acquisition Committee, controlled all major asset acquisition and divestiture decisions concerning the Partnership, subject to the approval by the Board of any such transaction that constituted a significant transaction as described above. Highline’s former responsibilities set forth above encompassed reporting and monitoring distributions to our Limited Partners.
Between the April 14, 2021 Amended Monitor Order and the time when the Receivership took effect, operational and financial decisions made by Highline regarding the affairs of the Partnership were subject to the same authority of the Monitor as decisions made by GPB. Since the affirmation of the Receivership Order by the Second Circuit, and through the date of the filing of this Annual Report, the Partnership has been managed under the direct supervision of the Receiver.
As compensation for the services to be rendered by Highline, the Partnership paid operation service provider fees (“OSP fees”), to Highline at an annual amount agreed to by GPB and Highline, subject to the Board’s approval, following Highline’s delivery of the annual written budget to GPB. In 2024 and 2023, OSP fees paid to Highline amounted to $0.3 million and $0.8 million, respectively. After the OSP fee payment in January 2024, management has suspended the payment of all OSP fees from the Partnership until further notice.
Highline Board of Directors
Prior to the Receivership taking effect, the Board oversaw the business and affairs of Highline. Among other things, the Board established Highline’s overall corporate policies and reviewed and oversaw the performance of Highline’s senior management in (i) executing Highline’s business strategy, (ii) managing the day-to-day operations of Highline, and (iii) managing the LPs and affiliates, including the Partnership, in accordance with the MSA. The Board also acted as an advisor to Highline’s senior management team. The Board’s mission was to further the long-term interests of the Receivership Entities. The Board was kept informed of Highline’s businesses through discussions with Highline’s management, primarily at meetings of the Board and its committees, and through reports and analyses presented to the Board by Highline’s senior management. The Board also reviewed and approved significant transactions approved by the Acquisition Committee and any material change in investment strategy of the Partnership or any of the LPs.
Highline’s Board is currently defunct, as previously disclosed. Joseph LaPorta resigned as a director in January 2024, followed by the resignations of Thomas Lemke in May 2024, and Walter Bishop and Jane Kanter in December 2024. The decision of Messrs. LaPorta, Lemke and Bishop, and Ms. Kanter, to resign was not the result of any disagreement relating to the Partnership’s operations, policies and practices. Upon his appointment, the Receiver assumed the effective function of the board of directors of the Partnership.
Appointment of Mr. Gardemal as Monitor and Receiver
On February 11, 2021, the EDNY Court appointed Mr. Gardemal over GPB. Pursuant to the EDNY Court’s original order, GBP was required to (i) grant Mr. Gardemal access to all non-privileged books, records and account statements for the GPB-managed funds, including the Partnership, as well as their portfolio companies, and (ii) cooperate fully with requests by Mr. Gardemal reasonably calculated to fulfill Mr. Gardemal’s duties. The order also granted Mr. Gardemal the authority to approve or disapprove proposed material corporate transactions by GPB, the Partnership or its subsidiaries, extensions of credit by them outside the ordinary course of business, decisions to resume distributions to the Limited Partners of the Partnership, or any decision to file any bankruptcy or receivership petition for any of them, among other actions.
Mr. Gardemal was required to submit a report to the court within 60 days of his appointment recommending either continuation of the Monitorship, conversion to a receivership, and/or filing of bankruptcy petitions for one or more of the various entities. The Monitor submitted this report on April 12, 2021, and recommended continuation of the Monitorship.
On April 14, 2021, the EDNY Court entered the Amended Monitor Order, which provides that, in addition to the SEC and GPB, certain State regulators will receive access to the periodic reports filed by Mr. Gardemal pursuant to the Amended Monitor Order.
On May 31, 2022, Mr. Gentile filed a motion in the SEC Action to modify the Amended Monitor Order. In that motion, Mr. Gentile sought a court order to, among other things, (i) narrow the scope of Mr. Gardemal’s responsibilities; and (ii) direct the monitor to ensure that GPB did not sell or otherwise dispose of assets or portfolio companies that the Partnership owns before the completion of a “strategic assessment” to be conducted by three managers Mr. Gentile purported to appointed to GPB on May 27, 2022. On that same day, May 31, 2022, Mr. Gardemal notified Mr. Gentile and GPB that Mr. Gentile’s purported appointment of three new managers to GPB without Mr. Gardemal’s approval was in violation of the Amended Monitor Order. Mr. Gentile and GPB were, at that time, given ten (10) business days to cure the violation of the Amended Monitor Order. The cure period has expired without any steps having been taken to comply with the Monitor’s notification of violation of the Amended Monitor Order.
On June 13, 2022, the SEC filed by order to show cause in the SEC Action an application and order to (i) convert the existing monitorship over GPB and the GPB-managed funds to a receivership, and appoint Joseph T. Gardemal III, as receiver; and (ii) impose a litigation injunction on cases filed against GPB and the GPB-managed funds. The Receivership Application and the Proposed Order Appointing Receiver and Imposing Litigation Injunction were filed with the EDNY Court with the consent of GPB’s management.
On December 7, 2023, the EDNY Court issued an Order, granting the SEC’s Receivership Application and adopting the Receivership Order. On December 12, 2023, Mr. Gentile and Mr. Schneider filed notice of appeal with the EDNY Court of the Receivership Order, along with an Application for Order to Show Cause to the EDNY Court to stay the Receivership Order pending resolution of Mr. Gentile’s and Mr. Schneider’s appeal to the Second Circuit. On December 14, 2023, the EDNY Court denied the Order to Show Cause, but exercised its discretion to grant a temporary stay of the Receivership Order to allow Mr. Gentile and Mr. Schneider to seek a stay pending appeal of the Receivership Order from the Second Circuit. On December 21, 2023, Mr. Gentile and Mr. Schneider timely filed their motion for a stay pending appeal with the Second Circuit.
On December 3, 2024, the Second Circuit affirmed the EDNY Court’s Receivership Order and lifted the stay, and the Receivership took effect. Pursuant to the Receivership Order, the Court has taken exclusive jurisdiction and possession of all assets of Highline, GPB, and certain other Receivership Entities, and the Court has appointed Mr. Gardemal to serve as Receiver for the Receivership Estate of Highline, GPB, and the other Receivership Entities.
Under the Receivership Order, the Receiver has all powers, authorities, rights, and privileges heretofore possessed by Highline, GPB, and the other Receivership Entities, and by any officers, directors, managers, managing members, and general and limited partners of Highline, GPB, and the other Receivership Entities. In connection with the implementation of the Receivership Order, the members of the board of directors of Highline ceased to serve as directors. Since the issuance of the Receivership Order by the Court, through the date of this Annual Report, the Partnership has been operating under the direction of the Receiver.

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ITEM 11. EXECUTIVE COMPENSATION
Item 11. Executive Compensation
Overview
The Partnership does not have “Executive Compensation.” As previously discussed in “Item 1. Business” above, the Partnership is managed by GPB through its affiliation with Highline under the supervision and direction of the Receiver. The current governing body that ultimately manages and make decisions for the Partnership is now the Receiver.
We have set forth below the compensation of all persons who served as a principal executive officer or principal financial officer of GPB and Highline, and the other applicable executive officers of GPB and Highline, during the year ended December 31, 2024. For certain officers, a portion of the compensation was paid by GPB and the remainder was paid by Highline and the applicable tables reflect the respective amounts paid by each of them.
Also, we have set forth below the compensation paid to the members of the Board during the year ended December 31, 2024.
GPB Executive Compensation
The cash compensation with respect to 2024 that was payable by GPB to each of GPB’s executive officers who were serving as of December 31, 2024 in respect of their services to GPB is set forth in the GPB 2024 Summary Compensation Table below. The amount of the payments for each of those executive officers was approved by the Mr. Gardemal as then-Monitor. The executive officers did not receive any equity awards or other non-cash compensation from GPB in 2024, and they participated in employee benefit plans and retirement plans that are sponsored and maintained by Highline.
Employment Agreements with Robert Chmiel and Michael Emanuel
On November 15, 2023, GPB and Highline entered into the third amended employment agreements with each of Robert Chmiel and Michael Emanuel, pursuant to which Mr. Chmiel serves as Chief Executive Officer and Chief Financial Officer of GPB and Chief Executive Officer of Highline, and Mr. Emanuel serves as General Counsel and Chief Compliance Officer of GPB and General Counsel of Highline.
Each agreement provides that the executive will receive annualized base salary compensation of $1,000,000, of which $750,000 is payable in equal semi-monthly installments throughout the year and the remaining $250,000 is payable in a lump sum each year, occurring on or about February 15 of each year thereafter, provided each are employed as of December 31 of that year.
In addition, each agreement provides for a stay bonus (the “Stay Bonus”) payment equal to $300,000 each, which vested on February 15, 2024. Further, to the extent that each executive continues to be employed by GPB or Highline on each of February 15, 2025, February 15, 2026 and February 15, 2027, each shall be entitled to receive an amount equal to $333,333 (each, a “New Stay Bonus”) to be paid no later than February 22 of such calendar year. If the executive’s employment is terminated without Cause or the executive terminates for Good Reason, in each case prior to the payment of the final such payment, the executive will receive a pro-rata payment in respect of the amount payable on the next applicable payment date based on the duration of the executive’s employment from the prior February 15 through the date of termination. Following the payment of the Stay Bonus in February 2024, each executive became eligible to participate in Highline’s key employee retention program (“KERP”) if, and to the extent, such a KERP is adopted by GPB and Highline for 2024 and subsequent years. The amount, if any, of such retention payment under the KERP for 2024 and subsequent years, if applicable, shall be determined by the Compensation Committee of the Board (and now, the Receiver). The right to any payments from the KERP shall be determined solely based on the terms of the KERP as adopted by GPB and Highline and approved by the former Compensation Committee of the Board and the Receiver.
Each agreement provides that if the executive’s employment is terminated without Cause or the executive terminates for Good Reason, or the executive terminates due to death or Disability (as defined in the agreement), the executive will receive a payment of COBRA costs for up to 18 months following the date of termination. These severance payment amounts were funded into an escrow account in accordance with the terms of the agreements.
The agreements provide for various restrictive covenants, including with respect to confidential information and assignment of inventions, restrictions on soliciting clients and customers for one year following termination and non-disparagement.
For purposes of the agreements, Good Reason means, in summary, (i) a material adverse change in title or duties, (ii) a non-appealable legal or regulatory finding of a material breach of the agreement by GPB or Highline, (iii) a relocation of executive’s principal office location outside of Connecticut, New York or Florida or a prohibition on working from home, (iv) certain new legal or regulatory actions by or against GPB or Highline, the factual basis for which arises after April 30, 2021, and (v) certain felony actions relating to GPB or its members following April 30, 2021.
GPB 2024 Summary Compensation Table
The table below summarizes the total compensation earned by each named executive officer of GPB in fiscal years ended December 31, 2024 and 2023.
All other
Name and Principal Position
Fiscal Year
Salary ($)
Bonus (1) ($)
Compensation (2) ($)
Total ($)
Robert Chmiel
975,000
300,000
52,055
1,327,055
Chief Executive Officer and Chief
Financial Officer of GPB (3)
712,500
-
63,014
775,514
Michael Emanuel
975,000
300,000
32,877
1,307,877
General Counsel and Chief
Compliance Officer of GPB (4)
141,667
-
21,918
163,585
1. The amounts in this column represent bonuses paid to the executive officer with respect to the applicable year listed in the table.
2. The amounts in this column represent payouts for unused personal time off (“PTO”) with respect to the applicable year listed in the table.
3. Mr. Chmiel’s compensation from Highline is separately reported in the below under the heading “Highline 2024 Summary Compensation Table”.
4. Mr. Emanuel’s compensation from Highline is separately reported in the below under the heading “Highline 2024 Summary Compensation Table”.
Grants of Plan-Based Awards
During the year ended December 31, 2024, GPB did not grant any plan-based awards to its executive officers.
Outstanding Equity Awards at Fiscal Year End
As of December 31, 2024, the executive officers of GPB did not have any outstanding equity awards of GPB.
Option Exercises and Stock Vested
During the year ended December 31, 2024, the executive officers of GPB did not have any option exercises or stock vested.
Pension Benefits
During the year ended December 31, 2024, GPB did not provide its executive officers pension benefits.
Non-qualified Deferred Compensation
During the year ended December 31, 2024, GPB did not provide its executive officers with a non-qualified deferred compensation plan.
Highline Executive Compensation
The cash compensation with respect to 2024 that was payable by Highline to each of Highline’s executive officers who were serving as of December 31, 2024 in respect of their services to Highline is set forth in the Highline 2024 Summary Compensation Table below. The amount of the payments for each of those executive officers was approved by Mr. Gardemal as then-Monitor. The executive officers did not receive any equity awards or other non-cash compensation from Highline in 2024, and they participated in employee benefit plans and retirement plans that are sponsored and maintained by Highline.
Highline 2024 Summary Compensation Table
The table below summarizes the total compensation earned by the principal executive officer, principal financial officer, and the two most highly compensated executive officers of Highline in fiscal years ended December 31, 2024 and 2023.
All other
Name and Principal Position
Fiscal Year
Salary ($)
Bonus(1) ($)
Compensation ($)
Total ($)
Robert Chmiel, Chief Executive
25,000
120,000
-
145,000
Officer (2)(3)
587,536
-
-
587,536
Michael Emanuel, General Counsel (2)(4)
25,000
120,000
-
145,000
1,158,390
-
-
1,158,390
Evan Cutler, Chief Financial Officer (5)
350,000
150,000
-
500,000
345,833
135,000
-
480,833
Nico Gutierrez, Managing Director (2)
187,500
412,500
306,971
(6)
906,971
362,500
330,000
-
692,500
Michael Frost, Former Chief
-
-
-
-
Executive Officer
-
-
300,000
(7)
300,000
1. The amounts in this column represent annual bonuses paid to the executive officer with respect to the applicable year listed in the table and, for Messrs. Cutler and Gutierrez, a portion of the reported bonus amount for 2023 was paid under the key employee retention program.
2. The listed executives had a hire date of July 1, 2020.
3. Mr. Chmiel’s compensation from GPB is separately reported in the above under the heading “GPB 2024 Summary Compensation Table”.
4. Mr. Emanuel’s compensation from GPB is separately reported in the above under the heading “GPB 2024 Summary Compensation Table”.
5. Mr. Cutler has served as Chief Financial Officer since January 2022.
6. The amount in this column represents cash severance and PTO paid to Mr. Gutierrez.
7. The amount in this column represents cash severance and PTO paid to Mr. Frost in connection with his termination on June 30, 2022.
Grants of Plan-Based Awards
During the year ended December 31, 2024, Highline did not grant any plan-based awards to its executive officers.
Outstanding Equity Awards at Fiscal Year End
As of December 31, 2024, the executive officers of Highline did not have any outstanding equity awards of Highline.
Option Exercises and Stock Vested
During the year ended December 31, 2024, the executive officers of Highline did not have any option exercises or stock vested.
Pension Benefits
During the year ended December 31, 2024, Highline did not provide its executive officers pension benefits.
Non-qualified Deferred Compensation
During the year ended December 31, 2024, Highline did not provide its executive officers with a non-qualified deferred compensation plan.
Highline Directors Compensation
The following table provides the compensation paid to the Highline Directors who served for all or part of 2024 with respect to the year ended December 31, 2024.
Fees earned or
All other
paid in cash
Stock
Option
Compensation
Name
($)
Awards ($)
Awards ($)
($)
Total ($)
Walter Bishop
167,500
(1)
-
-
-
167,500
Jane Kanter
190,000
(2)
-
-
-
190,000
Joseph LaPorta
6,333
-
-
-
6,333
Thomas Lemke
95,000
(3)
-
-
-
95,000
1. Includes committee member fees paid to Mr. Bishop for serving as the Audit Committee Chair and as a member of the Governance and Compensation Committees of $28,750, $9,375 and $9,375, respectively.
2. Includes committee member fees paid to Ms. Kanter for serving as the Governance Committee Chair and as a member of the Audit and Compensation Committees of $15,000, $23,437 and $14,063, respectively.
3. Includes committee member fees paid to Mr. Lemke for serving as a member of the Audit, Governance and Compensation Committees of $15,625, $9,375 and $10,000, respectively.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters
The Partnership is a limited partnership, and GPB serves as our General Partner pursuant to the LPA. As of December 31, 2024 and through the date of this filing, there is no person, entity or group who is known by us to be the beneficial owner of more than 5% of the outstanding Units of the Partnership.
SECURITY OWNERSHIP OF MANAGEMENT
Percentage
Percentage of
Class A
Percentage of
Class A-1
of Class
Class B
Percentage of
Class B-1
Class B-1
Beneficial Owner
Units
Class A Units
Units
A-1 Units
Units
Class B Units
Units
Units
Executive Officers and
Beneficially
Beneficially
Beneficially
Beneficially
Beneficially
Beneficially
Beneficially
Beneficially
Directors
Owned(1)
Owned (%)
Owned(2)
Owned (%)
Owned(3)
Owned (%)
Owned(4)
Owned (%)
Joseph T. Gardemal III(5)
-
-
%
-
-
%
-
-
%
-
-
%
Rob Chmiel(6)
-
-
%
-
-
%
-
-
%
-
-
%
Evan Cutler(7)
-
-
%
-
-
%
-
-
%
-
-
%
Michael Emanuel
-
-
%
-
-
%
-
-
%
-
-
%
All executive officers and directors as a group (4 persons)
-
-
%
-
-
%
-
-
%
-
-
%
(1) As of December 31, 2024, there were 7,889.94 Class A Units outstanding.
(2) As of December 31, 2024, there were 3,537.52 Class A-1 Units outstanding.
(3) As of December 31, 2024, there were 1,505.14 Class B Units outstanding.
(4) As of December 31, 2024, there were 587.97 Class B-1 Units outstanding.
(5) Joseph T. Gardemal III serves as the Receiver, and is responsible for managing and administering the Partnership pursuant to the Receivership Order. Mr. Gardemal is not a named executive officer Pursuant to Item 402 of Regulation S-K.
(6) Robert Chmiel serves as the effect function Chief Executive Officer and Chief Financial Officer of GPB and Chief Executive Officer of Highline. Pursuant to the Court Order, Mr. Chmiel serves under the direct supervision of the Receiver and is not a named executive officer Pursuant to Item 402 of Regulation S-K.
(7) Evan Cutler serves as the effect function Chief Financial Officer of Highline. Pursuant to the Court Order, Mr. Cutler serves under the direct supervision of the Receiver and is not a named executive officer Pursuant to Item 402 of Regulation S-K.
CHANGE IN CONTROL
The Partnership and GPB are not aware of any arrangements with respect to our Units, which may at a subsequent date result in a change of control.

---

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 13. Certain Relationships and Related Transactions, and Director Independence
FEES AND EXPENSES
The Partnership has entered into, and expects to continue to enter into, numerous related party transactions. The Partnership has incurred, and estimates it will incur in the future, the following fees and expenses:
Managerial Assistance Fee
Per the LPA and PPM, GPB, as General Partner is entitled to receive an annualized managerial assistance fee (the “Managerial Assistance Fee”), for providing managerial assistance services to the Partnership and the dealerships. Those services include conducting the day-to-day operations of the Partnership inclusive of the identification, management and disposition of underlying portfolio companies and/or dealerships, and other duties assumed and stated under the LPA. The Managerial Assistance Fee does not include expenses related to In-House Services and operations support services (defined below under “Partnership Expenses”) provided to the Partnership or its subsidiaries. Such expenses are in addition to, and not in lieu of, the Managerial Assistance Fee. The Managerial Assistance Fee is payable by the Partnership quarterly, in advance, at 2.0% per annum for Class A and B Units, and 1.75% per annum for Class A-1 and B-1 Units calculated on each Limited Partner’s Gross Capital Contributions. GPB, under supervision and direction of
the Receiver, in its sole discretion, may defer, reduce or waive all or a portion of the Managerial Assistance Fee with respect to one or more Limited Partners for any period of time (and intends to waive the Managerial Assistance Fee with respect to the Special LP, as defined below, and its affiliates that invest in the Partnership).
During the year ended December 31, 2024 and 2023, the Partnership paid $5.2 million and $5.0 million, respectively, in managerial assistance fees which reduced the liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statement of Net Assets in Liquidation.
During the year ended December 31, 2024, GPB increased the Management Assistance Fees expected to be paid during the liquidation term resulting in an increase in the liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statements of Net Assets in Liquidation of $0.3 million.
During the year ended December 31, 2023, GPB increased the Management Assistance Fees expected to be paid during the liquidation term resulting in an increase in the liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statements of Net Assets in Liquidation of $7.6 million primarily due to the extension of the expected liquidation completion date from December 31, 2024 to December 31, 2025.
Partnership Expenses
The Partnership pays its own operating expenses. GPB is responsible for its or its affiliates’ general and administrative costs and expenses and its day-to-day overhead expenses of managing the Partnership and is not entitled to be reimbursed by the Partnership for such expenses other than for the portion of the total compensation of GPB’s or its affiliates (including holding companies) officers and employees relating to the time such officers or employees provide In-House services or Operations Support Services to the Partnership or its subsidiaries. Such expenses are in addition to, and not in lieu of, the Managerial Assistance Fee. “In-House Services” include but are not limited to accounting, legal, compliance, information technology, human resources, and operational and management services to the Partnership or its subsidiaries. Operations Support Services include but are not limited to operational support and consulting services and similar services to, or in connection with, the identification, acquisition, holding and improvement of its subsidiaries. In addition, GPB, on occasion, pays Partnership expenses on the Partnership’s behalf when operationally feasible and obtains reimbursement. Upon request from GPB, the Partnership reimburses GPB, in full, for all of the expenses paid on its behalf. The balance associated with Partnership expenses payable was $0.1 million and $0.3 million of December 31, 2024 and 2023, respectively, and was included as a component of due to related parties in the Consolidated Statements of Net Assets in Liquidation. Partnership expenses paid for the year ended December 31, 2024 and 2023 were $37.9 million and $14.3 million, respectively, primarily consisting of legal indemnification costs, which reduced the liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statements of Net Assets in Liquidation by a corresponding amount.
The partnership expenses paid for by the Partnership to GPB are passed along to vendors that are unrelated parties which are included in general and administrative expenses - corporate in “Note 3. Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation”.
NOTES PAYABLE TO RELATED PARTIES
In 2017, the Partnership entered into two loan agreements with an affiliate of the Partnership, GPB Automotive Income Sub-Fund, Ltd. (“GPB AISF”), an offshore financing facility formed for the benefit of the Partnership, (“AISF Note 5 and AISF Note 6”) for a total of $11.8 million and incurred debt issuance costs of $2.0 million. In 2019, the Partnership entered into one loan agreement (“AISF Note 7”) with GPB AISF for $3.3 million and incurred debt issuance costs of $0.6 million.
Each AISF note was initially set to mature four years from the issuance date, and accrued interest at 8.75% per annum, payable monthly in arrears. In July 2021, AISF Note 5 and AISF Note 6 were amended to increase the interest rate to 12.5% and to extend the maturity date to December 2022. AISF Note 7 had an original maturity date of April 2023.
AISF Note 5, AISF Note 6, and AISF Note 7 entered into default in 2021. In August 2021, a waiver for the event of default was issued and the interest payments were deferred until December 2022 for AISF Note 5, AISF Note 6, and AISF Note 7.
Upon maturity, payments had not been made for AISF Note 5, AISF Note 6 and AISF Note 7. The timing for payment of these notes is contingent on the Partnership finalizing a plan to distribute money to its Limited Partners. The Partnership is not in a position to make distributions until the EDNY Court rules on the pending Receivership Application, (See “Item 3. Legal Proceedings”). The Partnership accrued interest on the outstanding notes using management’s best estimate of six months of interest past the reporting period end date. As of December 31, 2024, additional interest was accrued through June 2025 for AISF Note 5, AISF Note 6, and AIFS Note 7, as that represents the Partnership’s best estimate of the expected date of repayment, and was included as a component of notes payable - related party on the Consolidated Statements of Net Assets in Liquidation and a component of increase in notes payable - related party on the Statement of Changes in Net Assets in Liquidation.
In 2024, the Partnership and the Directors of GPB AISF determined an additional $1.2 million should be accrued as representing additional interest due on the historical unpaid interest, calculated by applying the contractual interest rates specified above for AISF Notes 5, 6 and 7.
Going forward, the Partnership will continue to accrue interest on the outstanding principal and unpaid interest amounts for AISF Notes 5, 6 and 7 at the contractual rates specified above.
Notes payable - related party consisted of the following:
(Dollars in thousands)
December 31,
Note
Face Value
Maturity Date
AISF Note 5
$
6,556
12/31/2022(1)
$
6,556
$
6,556
AISF Note 6
5,203
12/31/2022(1)
5,203
5,203
AISF Note 7
3,272
4/24/2023(2)
3.272
3.272
Total
15,031
15,031
Add: accrued interest in liquidation(3)
9,236
5,612
Total notes payable - related party
$
24,267
$
20,643
1. At December 31, 2022, these notes matured and the Partnership continues to accrue interest pursuant to the contractual terms.
2. At April 24, 2023, this note matured and the Partnership continues to accrue interest pursuant to the contractual terms.
3. Per the explanation above, interest is accrued on the outstanding notes for six months past the reporting period end date.
OTHER RELATED PARTY TRANSACTIONS
GPB’s principals, certain other individuals and entities that have assisted and may in the future assist in our operations are or will be members in GPB Auto SLP, LLC, a Delaware limited liability company (the “Special LP”). The Special LP will receive a profit allocation, commonly referred to as “carried interest”, from the Partnership in accordance with the waterfall provisions in the LPA. In 2024 and 2023, there have been no profit allocations allocated to the Special LP.
As compensation for the services to be rendered by Highline, the Partnership pays an OSP to Highline for an annual amount agreed to by GPB and Highline, subject to the then-Board’s approval, following Highline’s delivery of the annual written budget to GPB detailing the fees, costs and expenses that will be incurred by Highline in providing its Services.
OSP fees paid for the years ended December 31, 2024 and 2023 were $0.3 million and $0.8 million, respectively, which reduced the liability for estimated costs in excess of estimated receipts during liquidation in the Consolidated Statements of Net Assets in Liquidation. After the OSP fee payment in January 2024, management has suspended the payment of all OSP fees from the Partnership until further notice.
Guarantees
The member of GPB provided personal guarantees on certain floorplan and real estate loans prior to 2018. The initial amounts guaranteed totaled $48.7 million. Pursuant to the PPM, the member can charge a fee to the Partnership for providing such guarantee services. The guarantee fees payable to the member were calculated at $1.0 million based on 1.99% of the amount of the loans initially guaranteed. $1.0 million is due and payable to the member which is reflected as a component of due to related parties in the Consolidated Statements of Net Assets as of December 31, 2024 and 2023. The guarantee fees are amortized over the life of the loans and were fully amortized in 2021.
Non-Controlling Interests
An affiliated entity to the Partnership, GPB Holdings II, LP (“H2”), holds a 33.5% non-controlling interest in GPB Prime.
On January 5, 2023, the Partnership and GPB Prime reached an agreement for an additional $24.0 million distribution to the Partnership and H2, of which $8.0 million was distributed to H2.
On July 19, 2023, GPB Prime distributed $10.0 million to the Partnership and H2, of which $3.4 million was distributed to H2.
On November 3, 2023, GPB Prime distributed $13.4 million to the Partnership and H2, of which $4.5 million was distributed to H2.
On November 22, 2023, GPB Prime distributed $6.6 million to the Partnership and H2, of which $2.1 million was distributed to H2.
On November 22, 2023, the Partnership distributed $0.3 million to the former general manager of two dealerships of the New York Metro reporting unit, who holds 4% non-controlling interest, in the two New York Metro dealerships.
On January 23, 2024, GPB Prime distributed $7.0 million to the Partnership and H2, of which $2.3 million was distributed to H2.
On April 5, 2024, GPB Prime distributed $2.8 million to the Partnership and $0.9 million was distributed to H2.
Director Independence
For discussion of our director independence see “Item 10. Director, Executive Officers and Corporate Governance.”

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14. Principal Accounting Fees and Services
Fees Paid to the Independent Registered Public Accounting Firm
EisnerAmper LLP (“EisnerAmper”), served as the independent registered public accounting firm for the audit of the consolidated financial statements of the Partnership for the years ending December 31, 2024 and 2023. As the Partnership’s independent registered public accounting firm, EisnerAmper audited our consolidated financial statements for the years ending December 31, 2024 and 2023 and reviewed the related interim quarters.
The table below shows aggregate fees for professional services rendered to the Partnership by EisnerAmper, for years ended December 31:
December 31,
(Dollars in thousands)
Audit Fees
$
$
Audit-Related Fees
-
-
Tax Fees
-
-
All Other Fees
-
-
Total
$
$
Audit Fees. Audit fees for the years ended December 31, 2024 and 2023, consisted of fees associated with the audit of the Partnership’s consolidated financial statements included in the Partnership’s Annual Report on Form 10-K and reviews of the consolidated financial statements included in the Partnership’s Quarterly Reports on Form 10-Q.
Audit-Related Fees. The Partnership did not incur any audit related fees from EisnerAmper for years ended December 31, 2024 or 2023.
Tax Fees. The Partnership did not incur any tax fees from EisnerAmper for years ended December 31, 2024 or 2023.
All Other Fees. The Partnership did not incur any other fees from EisnerAmper for years ended December 31, 2024 or 2023.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15. Exhibits, Financial Statement Schedules
The following documents are filed as a part of this Annual Report on Form 10-K:
(a)(1) All Financial Statements: Consolidated Financial Statements are included herein immediately following the signature page of this report. See Index to Consolidated Financial Statements on page.
Page
Report of Independent Registered Public Accounting Firm (EisnerAmper LLP PCAOB ID 274)
Audited Consolidated Financial Statements:
Consolidated Statements of Net Assets in Liquidation as of December 31, 2024 and 2023
Consolidated Statements of Changes in Net Assets in Liquidation for the years ended December 31, 2024 and 2023
Notes to Consolidated Financial Statements
(a)(2) Financial Statement Schedules
We have omitted these schedules because they are not required, or are not applicable, or the required information is shown in the consolidated financial statements or notes thereto.
(a)(3) Exhibits
Exhibit Number
Exhibit Description
3.1
Certificate of Limited Partnership of GPB Automotive Portfolio, LP (incorporated herein by reference to Exhibit 3.1 to the Partnership’s Registration Statement on Form 10 filed with the SEC on May 14, 2021)
4.1
Fifth Amended and Restated Agreement of Limited Partnership of GPB Automotive Portfolio, LP, dated April 27, 2018 (incorporated herein by reference to Exhibit 4.1 to the Partnership’s Registration Statement on Form 10 filed with the SEC on May 14, 2021).
4.1.2
Fifth Amended and Restated Class A Private Placement Memorandum GPB Automotive Portfolio, LP, dated July 2018 (incorporated herein by reference to Exhibit 4.1.2 to the Partnership’s Registration Statement on Form 10 filed with the SEC on May 14, 2021).
4.1.3
Fifth Amended and Restated Class B Private Placement Memorandum GPB Automotive Portfolio, LP, dated July 2018 (incorporated herein by reference to Exhibit 4.1.3 to the Partnership’s Registration Statement on Form 10 filed with the SEC on May 14, 2021).
4.2
Description of the Partnership’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (incorporated by reference to Exhibit 4.2 to the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed on March 11, 2024).
10.1 +
Management Services Agreement, by and between GPB Automotive Portfolio, LP and Highline Management Inc., dated January 1, 2020 (incorporated herein by reference to Exhibit 10.12 to the Partnership’s Registration Statement on Form 10 filed with the SEC on May 14, 2021).
Subsidiaries of GPB Automotive Portfolio, LP (incorporated by reference to Exhibit 21 to the Partnership’s Annual Report on Form 10-K filed with the SEC on April 14, 2022).
31.1*
Certification pursuant to Section 302 of Sarbanes-Oxley Act.
31.2*
Certification pursuant to Section 302 of Sarbanes-Oxley Act.
32.1**
Certification pursuant to Section 906 of Sarbanes-Oxley Act.
32.2**
Certification pursuant to Section 906 of Sarbanes-Oxley Act.
101.INS
XBRL Instance Document.
101.SCG
XBRL Taxonomy Extension Schema.
101.CAL
XBRL Taxonomy Extension Calculation Linkbase.
101.DEF
XBRL Taxonomy Extension Definition Linkbase.
101.LAB
XBRL Taxonomy Extension Label Linkbase.
101.PRE
XBRL Taxonomy Extension Presentation Linkbase.
Cover Page Interactive Data File (the cover page XBRL tags are embedded within the iXBRL document).
*
Filed herewith
**
Furnished herewith.
+
This exhibit is a management contract or compensatory plan or arrangement.