Landlords demand rent for Reagor-Dykes dealerships in Lubbock, Plainview
Two investment companies have filed notice for Reagor-Dykes Auto Group to pay rent due or move out from locations on 82nd Street near Milwaukee Avenue.
The filing from Eighty Second Street Investments, LLC and Lubbock Windmill Real Estate, LLC states a total of $55,000 is due for August rent.
It states representatives for Reagor-Dykes told a managing member of the investment companies rent for August would be paid. "Though having represented that the Lessors' checks were in the mail, they in fact were not. Then additional representations were made that the rent for August of 2018 and subsequent months would be authorized and paid out of "cash collateral". However, the use of cash collateral approved by the Court did not include the payment of the rent due to Lessors on both of the above referenced Leases."
The attorney for Reagor-Dykes said in Bankruptcy Court last week that the bare-bones operating budget presented for the next two weeks did not include rent, which would be due Sept. 1. Discussion did not cover rent due for August.
The filing states the investment companies are having to borrow money to cover expenses usually paid through monthly rent income. Further, Eighty Second Street and Lubbock Windmill state Reagor-Dykes has not provided proof of casualty insurance, which is a lease requirement.
Eighty Second Street and Lubbock Windmill Real Estate ask Reagor-Dykes to pay rent due or move out so the properties can be re-leased.
A hearing on the matter is scheduled in U.S. Bankruptcy Court in Lubbock Sept. 19.
This isn't the only filing Thursday concerning rent. An executor of the estate of M.I. "Jack" Morris, deceased, filed notice $6,500 is currently due for rent at the Reagor-Dykes Plainview dealership, which is the monthly rate due. This filing requests the bankruptcy judge to allow use of cash collateral to pay rent owed.
The filing related to the Plainview lease states the landlord holds the right to reject the lease.
MONDAY: Ford Credit moves ahead with suit against Reagor, Dykes, some R-D companies
AUG. 18: Reagor-Dykes bankruptcy case: Read court order following Aug. 16 hearing
AUG. 17: Auto dealer claims Reagor-Dykes owes $513,000, vehicles may be in consumers' possession
AUG. 16: Vista Bank sues FirstCapital for $6 million, claims Dykes helped perpetrate check kiting scheme
AUG. 16: Bankruptcy court allows Reagor-Dykes continued use of cash collateral, hiring of CRO
AUG. 15: Reagor-Dykes Auto Group issues written apology
AUG. 14: Loss of Reagor-Dykes Chevrolet in Floydada a potential financial pitfall for city
AUG. 14: Vehicle auction company claims Reagor-Dykes owes it $687,000
AUG. 14: Ford Credit claims Reagor-Dykes is not following court orders; court grants extension to file docs
AUG. 13: 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