One of the Most Renowned Mustang Tuners Has Filed for Bankruptcy | Carscoops

      It remains uncertain whether Classic Restorations will continue producing its restomods during the bankruptcy proceedings.

      Classic Recreations reportedly has outstanding liabilities ranging from $1,001,000 to $10 million. Shelby American is believed to have recently terminated its licensing agreement with the company. The firm intends to settle debts with creditors after addressing administrative costs and associated expenditures.

      In recent years, Classic Recreations has released some of the most exquisite and costly Ford Mustang restomods, featuring lightweight carbon fiber bodies, modern powertrains, and custom interiors, with many builds nearing the $300,000 mark. However, as of July 9, the company has entered Chapter 11 bankruptcy in Texas.

      The news of the bankruptcy was initially reported by the Eleanor Mustang Fan Club. According to the Chapter 11 filing in the Northern District of Texas, Classic Recreations currently has assets estimated between $500,001 and $1 million and liabilities ranging from $1,000,001 to $10 million.

      Classic Recreations has been a licensed builder for Shelby American for many years, but it is understood that Shelby has recently revoked this agreement. By filing for Chapter 11 bankruptcy, Classic Recreations aims to restructure its finances and gradually repay its creditors.

      It is not yet clear if the company will continue operations during this period. Carscoops has contacted Classic Recreations for more information regarding its immediate and long-term prospects.

      The company is operating under Subchapter V for small business debtors, as indicated in court documents. It is believed to have total non-contingent liquidated debts of less than $3,424,000. The filing also indicates that Classic Recreations has fewer than 50 creditors and plans to begin distributing funds to them after covering necessary administrative expenses.

      The market for high-priced restomods has experienced significant growth in recent years, which has benefited companies like Classic Recreations. Pete Vanderveen has been identified as a turnaround expert for the firm, and there is hope that he can help improve the situation.

      Thanks to David from the Eleanor Mustang Fan Club for the tip!