Auction of rare autos once owned by businessman nets $44M

ELKHART, Ind. (AP) - An auction of hundreds of rare and antique automobiles that once belonged to a northern Indiana businessman has generated more than $44 million in proceeds in a bankruptcy case.

Last weekend's auction of the 240 autos as well as automotive memorabilia once owned by Najeeb Khan drew more than 2,500 live and remote bidders from 53 countries, The Elkhart Truth reported.

Khan is the former CEO of Interlogic Outsourcing Inc., an Elkhart-based payroll processing firm that was sold after filing for bankruptcy protection last year.

RM Sotheby's said the auction grossed just under $44.4 million in sales, including eight cars that went for more than $1 million each. The auction house said it expected the collection to sell for $35 million to $40 million.

A bankruptcy court had ordered the collection auctioned off to help repay more than $100 million Khan owes to KeyBank National Association and more 120 other companies and individuals.

'œWe are extremely pleased with the results, especially considering the complexities and challenges of executing such a high-profile auction with multiple constituents in the current market environment,'ť said RM Sotheby's President Kenneth Ahn.

Some of the vehicles in the auction were among only a handful built or came from a rich racing pedigree. The highest prices were fetched by a 1952 Ferrari 225 Sport Berlinetta by Vignale, which went for $2.8 million, and a 1953 Fiat 8V Supersonic by Ghia, which sold for $2.04 million.

Three rare Jaguars - a 1955 D-Type, a 1963 E-Type Lightweight and a 1957 XKSS- sold for between $1.3 and $1.9 million. And a 1955 Cooper-Jaguar T38 Mk II - the second of only three made - sold for $1.7 million.