Hecker spells out his sources of income

Former auto mogul Denny Hecker counted on receiving $31,000 a month over the next four years for selling two car dealerships, but that was nixed by bankruptcy court rulings, so he's been getting by on consulting fees, loans and a 401(k), according to a court document filed Tuesday.

Hecker's divorce lawyer, Bill Skolnick, filed the document with Hennepin County District Judge Jay Quam, who is handling Hecker's divorce from Tamitha Hecker. The couple has two children. Quam asked three weeks ago for information on Hecker's finances and employment since he filed for bankruptcy in June. At that time, Hecker claimed $18 million in assets and $767 million in debts.

Quam is considering whether to grant Tamitha Hecker's request of $7,500 a month support pending resolution of other legal issues. She cites a postnuptial agreement she argues is enforceable and that Denny Hecker argues is void.

Hecker also faces possible federal criminal charges. Last month, the federal courts declined to put his bankruptcy proceeding on hold while the criminal process played out.

Hecker's auto empire collapsed last fall. His numerous creditors are closely monitoring his court actions.

He claims he was to receive $20,833 a month from the sale of his Inver Grove Heights Toyota dealership, but that is now the subject of an "adversarial complaint" in bankruptcy court. He also was to receive $10,416 a month from the sale of Brainerd Toyota, but the bankruptcy court killed that plan, too.

Among the 12 sources of income Hecker lists since his bankruptcy filing, the largest is $125,155 to cash out a 401(k). Next is a $100,000 loan from LKMCD Properties, an entity created by the new owner of Inver Grove Heights Toyota.

He got $50,000 in loans from Ralph Thomas, who hired Hecker in the 1980s to manage his Minneapolis Auto Auction. Thomas later sold the auction to Hecker and Walter Bush.

Hecker listed receiving $25,000 through four separate "consulting fees," and $25,000 for "reimbursement of expenses." He didn't elaborate on what that or another $29,584 reimbursement was for. The document also says he received $198 and $500 over the summer from "unknown" sources.

Quam is likely to rule within a couple of weeks on Tamitha Hecker's request. Skolnick and Hecker have argued she has access to $200,000 in cash, jewelry and fur coats and doesn't need financial help. But her lawyer, Becky Toevs Rooney, said Tamitha Hecker is not required to spend down her assets, and she has told the bankruptcy trustee she would not touch the money.

The documents don't detail the credits and debits of New Dimensions Advisors, Hecker's new business. Parts of what Skolnick filed are not yet public.

In a court hearing last month, Rooney questioned the scope of his new business. But Skolnick said his client doesn't have a job.

Hecker has said in previous documents that he is living with his mistress, Christi Rowan, in one of his homes and she pays rent to the bankruptcy trustee.

Toyota seeks an end

In separate news, Toyota Motor Sales USA on Monday asked the U.S. Bankruptcy court to officially terminate its dealer agreement with Denny Hecker's Brainerd/Baxter store due to a lack of compliance on Hecker's part and because a "proposed buyer is abandoning the transaction" to buy the store's assets.

Toyota said it had repeatedly postponed terminating the dealer agreement in the hope that a someone would buy the once-flourishing store. Twin Cities auto dealer Paul Walser tried to buy the store's non- real estate assets from Hecker for about $3 million last month, but the bankruptcy judge's ruling last week halted the sale.

While Walser told the Star Tribune last week that he was still interested in buying the store, which Toyota ran for months before shutting it in September because of Hecker's defaulted loans, it appears a resolution was not to be.

After four months of contract extensions, Toyota told the court that it wanted to start its dealer termination notice so that Hecker could no longer buy cars from Toyota, be reimbursed for warranty work or have access to Toyota's computerized ordering and warranty systems. A court hearing on Toyota's request was set for Nov. 12 in Minneapolis. According to bankruptcy records, Hecker owes various Toyota entities $17.4 million.

Rochelle Olson • raolson@startribune.com ; Dee DePass • ddepass@startribune.com