International Bank of Commerce asks for loan payment in Reagor-Dykes case
International Bank of Commerce Wednesday filed objections in bankruptcy court to the use of cash collateral that has kept the Reagor-Dykes Auto Group operating on a bare-bones budget. IBC claims it has not received monthly loan payments since right before the bankruptcy filing.
IBC's filing states it has loans of about $35 million with various Reagor-Dykes entities. In the filing this is worded as "IBC and RDAG entered into an approximately $35 million credit facility". The filing does not state the amount of back loan payments due.
The principal borrower is D and R Acquisitions, L.L.C., which is not among companies that filed for bankruptcy protection. This filing states D and R as well as RD7 Investments, L.L.C. are owners of most of the Reagor-Dykes Auto Group's properties, including the vast majority of its dealerships. "In most instances, each Debtor-Dealerships is a tenant, and Acquisitions or RD7 (collectively, "Landlords") is its landlord under a commercial lease."
IBC claims an operational budget presented Aug. 3 with a request to use cash collateral included a line item for rent to be paid, but IBC has not received any such payment. The second collateral use order a few weeks ago required Ford Motor Credit's consent to pay rent. Because of this, IBC claims Reagor-Dykes is at least two months behind on rent payments.
Because of this default, IBC states it has the right to foreclose; this could lead to IBC or another purchaser owning the dealership locations.
IBC states the financial situation makes it difficult for Reagor-Dykes to reorganize financial affairs under Chapter 11 bankruptcy protection, "thereby prejudicing all creditors and other parties in interest."
IBC asks future cash collateral budgets and authorization to use cash collateral allow for full and timley rent payment. The next court hearing on the cash collateral use is Thursday morning.
RELATED WEDNESDAY: Ford Credit objects to Reagor-Dykes earlier legal team
MONDAY: Vista Bank doubles relief request in new federal suit against FirstCapital Bank
AUG. 25: Reagor-Dykes chief restructuring officer hires new legal team
AUG. 25: GM proceeding with termination of Reagor-Dykes Floydada
AUG. 20: 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