Washington-Based Independent Pre-Owned Car Dealer Seeks Chapter 11 Protection

Mudarri Motorsports Co, a car and motorsports dealership company based in Kirkland, WA, enters bankruptcy following a financial strain.​

Written By Twinkle Jha
Mudarri Motorsports Co filed a bankruptcy petition on April 28 (Image credit: Erik Mclean | Pexels | Created on Canva)

One of Kirkland, WA-based car and motorsports dealership companies has filed for bankruptcy. Mudarri Motorsports Co is seeking to readjust its finances while regular operations continue under court guidance.

Court filings show more than $4 million in unsecured claims. The company also reports a significant gap between its assets and liabilities.

Mudarri Motorsports Co Files for Chapter 11

The company filed a voluntary Chapter 11 petition on April 28, 2026. Company president Maximillian Mudarri signed the petition before it was submitted to the U.S. Bankruptcy Court for the Western District of Washington.

Attorney Steven M. Palmer of Cairncross & Hempelmann, P.S., is the legal counsel for Mudarri Motorsports Co.

Company Faces Over $4 Million in Unsecured Claims

According to case filings on PACER, the company submitted a list of creditors who have the 20 largest unsecured claims. A total sum of the unsecured claims amounts to more than $4 million. First Citizens Bank has made the largest claim of approximately $2 million.

A few other unsecured creditors include Northpoint Commercial Finance (financing company), Warren Beres (rent balance), WA Dept of Labor & Industries (government agency), and more.

A mix of obligations to banks, inventory financing companies, government agencies, and others indicates that Mudarri Motorsports Co is probably facing a range of issues. The filings point to challenges related to financing, regulatory obligations, and operations.

Filing details, however, state that funds will be available to the unsecured creditors.

More Highlights from the Petition

Mudarri Motorsports Co currently faces a substantial gap between its estimated assets and liabilities. According to case filings, the company has up to $50,000 in assets against liabilities in the range of $1 million to $10 million.

Other document filings included a list of equity security holders, a disclosure of compensation of attorney, and a verification of creditor matrix.

Key details from the filing include:

  • Filing Date: April 28, 2026
  • Court and Jurisdiction: U.S. Bankruptcy Court for the Western District of Washington
  • Type of Filing: Active, Voluntary Petition
  • Chapter: 11
  • Case Number: 26-11413
  • Estimated Assets: Between $0 and $50,000
  • Estimated Liabilities: Between $1,000,001 and $10 million
  • Reason for Filing: Restructure business under court supervision

Case filings add that MEM Holdings LLC, a company affiliate, also filed for Chapter 11 proceedings on January 29, 2026 (case number: 26-10294).

About Mudarri Motorsports Co

The dealership sells pre-owned cars and motorsports vehicles in Kirkland, Washington. According to its official website, Audi, Range Rover, Bentley, BMW, Dodge Viper, and Ferrari are among its current range. Services comprise concierge, maintenance plan, and buy-back program.

While Mudarri Motorsports Co currently deals with unsecured debt and financial imbalance, the availability of funds for creditors indicates it is geared towards reorganization. The final outcome is, however, going to depend on creditor negotiations and court rulings through the proceedings.

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Twinkle Jha is a content writer passionate about crafting engaging and informative pieces for diverse audiences. She holds a degree in Journalism & Mass Communication that helps her create news-based articles related to restaurants, retail, and real estate in the US. With five years of writing experience, Twinkle has a strong base for her research, allowing her to create compelling content. Her keen eye for detail and creative approach make her writing stand out. When not working, she loves to watch movies.
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