Opinion ID: 660189
Heading Depth: 3
Heading Rank: 4

Heading: Valuation of the Buick Franchise7

Text: 27 Assuming that GM did exercise its RFR in compliance with the FPA, appellants ask us to consider the issue of the price GM intends to pay the Trustee for the Buick franchise. Appellants point to section 12.3 of the franchise agreement, which states that GM will have a right of first refusal to purchase the dealership assets. There is no dispute that the Trustee and Warnock agreed to amend the intangibles provision of the purchase agreement to allocate $150,000 (instead of $25,000) of the $250,000 total to the Buick franchise. Appellants do dispute, however, that this represents the actual or reasonable value of the Buick dealership assets. 28 Appellants contend that GM should also pay for part of the lease for the premises of the debtor's dealerships attributable to the Buick franchise. This lease was undisputedly acknowledged in the bankruptcy court's early findings of fact to be the greatest asset of the operation as a whole. It seems fair to assume that some pro rata share of the value of that lease was an asset of the Buick dealership for which the franchise agreement obligates GM to pay if it exercises its RFR. If so, such a share would have to be included, above and beyond any amount allocated to the intangible aspect of the Buick franchise, in an actual or reasonable value of the debtor's Buick dealership assets. 29 Through this example alone, it becomes obvious that there is indeed a genuine issue of material fact with regard to the valuation of the Buick dealership assets for purposes of determining what GM must pay to exercise its RFR. Upon remand to the bankruptcy court, the parties should be permitted to present evidence of valuation and the court should decide the appropriate value for the Buick dealership assets. 30