1984 was a troubled year for Avanti Motor Corporation. The previous year marked all time production with 289 cars built and
over $8 million in sales. However, because Blake was putting a rush on to get more cars built, Avanti was not maintaining its
quality. On many of the cars for 1984, the paint had a problem sticking to the body panels. Before the year was over, Avanti had to
repaint 270 cars.
A major setback occurred when the company's revolving credit line was stopped by First Source Bank. The result was that a lot
of replacement stock did not get built, or sold of course, and Avanti had problems paying its bills. First Source in early 1985 won
a $3 million prejudgment against the company. Bank representative seized the company's property and cars. Later in the year,
the company had to file for bankruptcy. This ended with First Source seizing all asset's and then putting them up for sale.
A new player entered at this time. Michael Kelly made a successful bid of $722,000 to take over the company. He renamed it
the New Avanti Motor Corporation.