UPDATED: Bankruptcy court allows Reagor-Dykes continued use of cash collateral, hiring of CRO
Reagor-Dykes Auto Group issued this statement Thursday afternoon:
The Reagor Dykes team is thankful for today's federal court order result, We are encouraged by Ford Motor Credit's willingness to work towards a constructive solution with our (CRO) Corporate Restructuring Officer.
Everyone is working diligently to provide positive solutions for our customers, our stakeholders, our partners and our families.
The RDAG is committed to doing what's best for everyone involved and for the entire West Texas community.
We want to thank everyone for their positive support during this time.
Reagor-Dykes Auto Group's terms to use cash collateral to keep operating on a bare-bones budget was continued during an interim hearing in U.S. Bankruptcy Court Thursday morning. This allows the company to continue paying employees and cover overhead expenses next two weeks.
Attorneys for Reagor-Dykes, Ford Motor Credit and other secured creditors generally did not oppose to terms issued earlier this month. This allows Reagor-Dykes to use cash collateral until Aug. 30, when a final hearing on the matter will be held. An attorney for Reagor-Dykes presented a budget that runs until that date, stating the company is working to find additional capital for both operating and floor plan financing. The budget does not include about $284,000 in rent due Sept. 1.
Also, the Court has allowed Reagor-Dykes' hiring of BlackBriar Advisors LLC in the role of a chief restructuring officer, at least for the next two weeks. While BlackBriar will not handle a long list of duties Reagor-Dykes initially proposed, it will take the lead on the companies' financials. The judge overruled a U.S. Trustee's objection to the hiring. The judge said, at least on an interim basis for the next two weeks, hiring of a chief restructuring officer is not against bankruptcy code.
Rick Dykes was present in the packed courtroom; Bart Reagor was not. Reagor's personal attorney was. Attorneys representing these entities were also present: The U.S. Trustee's Office, Universal Underwriters Service Corporation, Manheim/Online Vehicle Exchange LLC, Gulf States Toyota, Vista Bank, FirstCapital Bank. Other attorneys representing creditors or interested parties were on the phone. A Ford Motor Credit attorney told the judge an executive vice president of FMC traveled from Michigan because of the massive scope of this case.
A final hearing on the request to use cash collateral and employment of a CRO will be held 9 a.m. Aug. 30.
RELATED THURSDAY: Vista Bank sues FirstCapital for $6 million, claims Dykes helped perpetrate check kiting scheme
WEDNESDAY: Reagor-Dykes Auto Group issues written apology
TUESDAY: Loss of Reagor-Dykes Chevrolet in Floydada a potential financial pitfall for city
TUESDAY: Vehicle auction company claims Reagor-Dykes owes it $687,000
TUESDAY: Ford Credit claims Reagor-Dykes is not following court orders; court grants extension to file docs
MONDAY: U.S. Trustee opposes Reagor-Dykes request to hire chief restructuring officer
AUG. 10: Ford Credit: Reagor-Dykes fraud may be among largest of its type in U.S. history; GM files to terminate Floydada dealership
AUG. 9: Reagor-Dykes questions former CFO’s actions; Contractor claims $700,000 due now
AUG. 7: Former Reagor-Dykes employees claim they were not paid
AUG. 6: Customers concerned over Reagor-Dykes 'unwinding' process
AUG. 6: Ford suit against Reagor-Dykes on hold while bankruptcy case proceeds
AUG. 3: Judge approves Reagor-Dykes employee pay
AUG. 2: Mayor: Downtown Lubbock growth to remain strong regardless of Reagor-Dykes future
INITIAL STORY: Ford Motor Credit sues Reagor-Dykes; R-D files for chapter 11 bankruptcy