Reagor-Dykes aircraft to be sold, pending court approval
Attorneys for Reagor-Dykes and Madison Funding LLC have filed court documents stating both sides have agreed to terms to allow a Reagor-Dykes company to sell an aircraft.
Madison Funding filed the motion to lift an automatic stay to allow a related company that has not filed for bankruptcy, Reagor-Dykes Executive Travel, LLC, sell a 1995 Cessna Citation ULTRA Model 560. RDET acquired a loan from Madison Funding for $917,500 in December 2016.
Under chapter 11 bankruptcy rules, most transactions are effectively frozen, requiring the court to lift a stay to proceed. RD Executive Travel is not one of the Reagor-Dykes companies that filed for bankruptcy protection after Ford Credit sued the Auto Group. However, the filing notes parties tied to this filing "believe that the Aircraft has been used by Debtor entities so that the bankruptcy estate may have an arguable, albeit tenuous, interest in the Aircraft. Consequently, out of an abundance of caution, they seek an order modifying the stay so that RDET may sell the Aircraft, receive releases from Madison, and Madison may fund a loan to the prospective purchaser."
The court filing states Reagor-Dykes Executive Travel has defaulted on the loan and has agreed to sell the plane. A prospective buyer has emerged. FlightAware.com shows the most recent flight for this aircraft was Aug. 7 from Dallas to Lubbock.
According to this motion, the U.S. Trustee and Reagor-Dykes attorneys have agreed to these terms. You can read the motion in the pdf below: