Jayhawk Acceptance Corp.'s chief executive is not receiving a salary as the subprime auto lender battles its way through bankruptcy. But it's not as if his relationship with the company has been a complete bust.
Carl H. Westcott, who is also the company's chairman and principal shareholder, had a number of business relationships with the company prior to its bankruptcy filing in February.
According to documents filed last week with the Securities and Exchange Commission, in 1996 Jayhawk paid a firm wholly owned by Mr. Westcott $242,000 to produce advertisements and buy ad time for the company.
Jayhawk purchased $271,000 worth of installment contracts from Atlanta Toyota Inc., which Mr. Westcott owned. Jayhawk also paid $614,000 to a company in which Mr. Westcott is principal shareholder to perform "certain claims administration services." And the subprime auto lender paid Mr. Westcott $109,000 for use of his private jet.
A spokeswoman said Mr. Westcott has sold his interest in Atlanta Toyota, and that Jayhawk rented the airplane last year to tout a secondary offering to investors. "Nobody uses now the plane except Mr. Westcott," she said.
Mr. Westcott took the helm at Jayhawk after the company filed for Chapter 11 bankruptcy on Feb. 7. Jayhawk's shaky financial status led its auditor, Ernst & Young, to "raise substantial doubt about the company's ability to continue as a going concern."