Tricolor Paid $125 Million for Vehicles It Will Now Auction Off

Mexican and American flags attached to vehicles at a Tricolor dealership in Houston, Texas.

Photographer: Mark Felix/Bloomberg

Bankrupt subprime auto lender Tricolor Holdings won court permission to hold an auction for about 9,500 vehicles that it acquired for $125 million before the company collapsed earlier this year.

Proceeds from the sales will be set aside while the company works with creditors on a plan to divide the money, lawyers for the trustee overseeing Tricolor said in a court hearing Thursday afternoon in Dallas.