Auto dealer with links to Speedway and four Las Vegas dealerships posts $685 million loss

Sonic Automotive, a Charlotte, N.C.-based auto dealer controlled by Las Vegas Motor Speedway owner Bruton Smith, on Wednesday posted a $685.6 million loss for the fourth quarter and said it may have to file for bankruptcy protection.

The Charlotte Observer newspaper said the company, which has 164 franchises in 15 states, had about $1.9 billion in outstanding debt as of Dec. 31. Roughly $1.5 billion of debt is scheduled to mature this year and next. The Observer noted that the debt includes $105.3 million due May 7 that Sonic said it may not be able to pay if it can't restructure debt.

The Observer said Sonic executives wouldn’t share details about debt restructuring options during a conference call to discuss fourth-quarter results. Vice President and Chief Financial Officer David Cosper told the paper the company’s debt situation was “very fluid” and changing by the day.

Sonic Automotive operates four dealerships in Las Vegas: Cadillac of Las Vegas East at 2711 E. Sahara Ave.; Cadillac of Las Vegas West at 5185 W. Sahara Ave.; Honda West at 7615 W. Sahara Ave.; and Volvo of Las Vegas at 7705 W. Sahara Ave.

Charlotte Business Journal said Wednesday that Sonic is considering selling up to 20 percent of it 164 dealerships. The Wall Street Journal noted Wednesday that Sonic suspended its dividend in February and said it was evaluating alternatives to boost liquidity.

Sonic Automotive shares fell 54 cents, or 33.75 percent, Wednesday to close at $1.06 on the New York Stock Exchange. The share price is down 33.8 percent from Monday and about 95 percent from a year ago.