Nearly 2 years after Reagor-Dykes filed for Chapter 11 Bankruptcy, the businesses it defrauded in one of the largest schemes of its kind in history can finally expect to see some of the money they are owed by the former auto group.
In a confirmation hearingon Wednesday via video conference, Federal Bankruptcy Judge Robert Jones approved the final liquidation plan to pay off creditors.
This includes some of its largest investors like Ford Credit, GM Financial and a couple banks.
The decision comes after failed attempts to re-group and re-build what remained of the estate.
The current plan contains several modifications from original filings. According to court documents, 21 total objections were filed to prior versions.
The final objection, from U.S. Bank, was dropped ahead of Wednesday's hearing.
Its representative citing this latest option was the best path moving forward. Ashley Ellis, legal counsel for the estate, said it's pleased to have everyone on board.
Now the remaining dealerships will be sold off, and the assets distributed in order of priority. Ford Credit gets all the proceeds from selling its collateral.
GM will get up to $3.1 million from a pending suit it is working with the estate on against Aim Bank.
Vista Bank and First Bank and trust won't get payments under the plan after settlements they cut with the estate earlier this year.
First Capital Bank and Aim Bank are still eligible to get a distribution. All other claims, come after that.
Judge Jones expressed concern about how much money that leaves for smaller lenders.
Co-owner Bart Reagor is also entitled to a share of the money, but only until after all the creditors are paid. Anew provision blocks any further lawsuit against the estate.