More lenders object to Reagor-Dykes' request for TT&L, trade-in payment
Ahead of Thursday's hearing in U.S. Bankruptcy Court, more lenders have filed objections to Reagor-Dykes Auto Group's request that lenders pay tax, title and license balances and trade-in liens.
As we've reported the past few days, Reagor-Dykes states after filing for bankruptcy August 1, its access to funds and credit were cut off, leaving these balances unpaid. This left some customers unable to register vehicles and/or being asked for payment on vehicles they already traded in.
Ally Financial and Ally Bank's filing states it has provided information of affected customers to Reagor-Dykes' chief restructuring officer but has not received needed information in return. Ally claims instead of providing this information, Reagor-Dykes filed for the motion seeking immediate action by all lenders. And, similar to other objects referenced above, Ally states it is only aware of consumer issues if the customer comes forward.
Ally claims it already provided funds to cover TT&L and trade-ins before the bankruptcy filing. The filing states, "Having already once diverted the Affected Consumers’ contract proceeds to prop up their failing operations, the Debtors [Reagor-Dykes] now seek the Court’s permission to “double dip” into those same transactions for their benefit, this time at the Retail Lenders’ expense. Ally previously accounted for the TT&L Fees and Trade Lien Payoffs in the amounts Ally paid to purchase the retail contracts from the Debtors prior to the bankruptcy."
The filing also states Reagor-Dykes, the debtors, "essentially admit that prior to the Petition Date, they failed to use contract proceeds provided by Retail Lenders to pay TT&L Fees and Trade Lien Payoffs on behalf of the Affected Consumers." In Ford Motor Credit's lawsuit, it claims Reagor-Dykes' reported sales dates were inaccurate by an average of 55 days, according to DMV records. Ford Claims this allowed the Auto Group to receive funds for vehicles but not then pay off floor plan financing within the industry standard.
According to Ally, it holds liens for several of the vehicles that were traded in, which, it claims, Reagor-Dykes "improperly failed to pay off with loan proceeds advanced by other Retail Lenders on behalf of Affected Customers."
TD Auto Finance is another lender that writes negotiations are ongoing with Reagor-Dykes' legal team to resolve issues. Unlike Ally and U.S. Bank's objections, TD Auto objects to some specifics within Reagor-Dykes' motion.
Bank of the West also filed notice it has not received information from Reagor-Dykes, despite having provided its own collection of documents to the Auto Group.
Bank of the West states it did not receive due process up to this point and is now being asked "to bear the burden of Debtors' improper conduct that led to this filing." Bank of the West asks the court to establish "fair conditions and a level playing field" before an order is made.
Bank of the West filed a list of more than a dozen vehicles that are not properly titled because of these issues. All have temporary license tags that have expired; the earliest expiration date is July 13, 2018, more than two weeks before Ford Motor Credit filed suit and Reagor-Dykes filed for bankruptcy.
At a court hearing Wednesday, an attorney for Reagor-Dykes told the judge negotiations are ongoing with the many lenders involved regarding TT&L and trade-in lien payoffs. He believe most objections would be resolved before this comes before the judge Thursday.
TD Auto Finance's filing:
Bank of the West's filing:
TUESDAY: U.S. Bank objects to Reagor-Dykes request for lenders to pay TT&L, trade-ins
MONDAY: Compromise on vehicles in First Bank & Trust lawsuit v. Reagor Auto Mall
MONDAY: Judge approves sale of Reagor-Dykes plane; Wells Fargo objects to portion of TT&L motion
OCT. 12: Ford Credit supports part of Reagor-Dykes' request for lenders to pay TT&L, trade-ins
OCT. 12: FirstCapital files counterclaim, motion to dismiss
OCT. 10: Reagor-Dykes aircraft to be sold, pending court approval
OCT. 10: Several filings in Reagor-Dykes bankruptcy case
OCT. 1: KamKad, Reagor-Dykes execute purchase agreement
SEPT. 24: FirstCapital Bank requests First Bank & Trust lawsuit against it, Reagor-Dykes, others move to federal court
SEPT. 21: Judge sets schedule, trial date in Vista Bank v FirstCapital Bank lawsuit
SEPT. 21: Former Reagor-Dykes CFO denies late payments, says Vista Bank attacked him, his family
SEPT. 20: Vista Bank sues former Reagor-Dykes CFO, claims loan default
SEPT. 19: Texas DMV: Reagor-Dykes should promptly resolve title issues
SEPT. 19: Brad, Kenneth Burgess file motion to dismiss Vista Bank lawsuit
SEPT. 18: First Capital Bank files motion to dismiss lawsuit
SEPT. 18: Court approves bid process for Reagor-Dykes Auto Group, extends use of cash collateral
SEPT. 17: Ford Credit, GM object to certain aspects of proposed Reagor-Dykes sale
SEPT. 14: Judge sets trial date in Ford Credit lawsuit vs. Reagor-Dykes
SEPT. 14: Reagor denies Ford Credit's claim vehicles sold out of trust
SEPT. 13: Dykes: Former Reagor-Dykes CFO admits he provided false info to Ford Credit
SEPT. 11: Reagor-Dykes Auto Group requests court to allow sale of company
SEPT. 4: Reagor-Dykes Auto Group establishes process to resolve customer problems
AUG. 31: International Bank of Commerce asks for court to allow it to foreclose on Reagor-Dykes dealerships
AUG. 31: More Reagor-Dykes companies, co-owners may soon file for chapter 11
AUG. 30: Court extends Reagor-Dykes employment of CRO; officer discusses potential dealership buyers
AUG. 29 : International Bank of Commerce asks for loan payment in Reagor-Dykes case
AUG. 29: Ford Credit objects to Reagor-Dykes earlier legal team
AUG. 27: 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. 23: Landlords demand rent for Reagor-Dykes dealerships in Lubbock, Plainview
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