Reagor-Dykes TT&L, trade-in issues remain unresolved; progress reported with some lenders
There still is no resolution for Reagor-Dykes customers who either have unpaid tax, title and license or a trade-in that has not been paid off. But, according to an attorney for Reagor-Dykes, resolution could be reached with a few lenders by the end of the week.
An agreement has been reached with one of the largest lenders involved in this case, TD Auto. Reagor-Dykes' attorney said in court Monday agreements may be reached this week with two or three other lenders. This would cover about 25% of transactions in question.
As we've reported recently, Reagor-Dykes states since it filed for bankruptcy Aug. 1, its access to credit and funds has been cut off, leaving these balances unpaid. A couple months later, many customers still have vehicles that cannot be registered or request for payments on vehicles they no longer possess. Though customarily dealerships pay TT&L and trade-ins through the process of a vehicle transaction, because of its financial situation Reagor-Dykes has asked the court to force lenders to pay these amounts.
An attorney for Reagor-Dykes said when his team began on this case there were 781 unresolved TT&L issues. Since then about 300 cases have been resolved, with nearly 300 additional cases identified. This leaves 780 unresolved TT&L cases, totaling about $1.1 million, which the attorney said he believes only involved Reagor-Dykes dealerships that have filed for bankruptcy. There could be additional issues with non-debtor entities.
The attorney said 221 trade-in problems were initially identified, with eight more later added to the list. 30 of these trade-in problems were resolved. This leaves 199 unresolved trade-in liens, amounting to about $4.4 million. The amount would come down if vehicles in RDAG possession were sold.
During Monday's hearing as well as in several earlier court filings, attorneys for lenders have said a major concern is the lack of information being provided by Reagor-Dykes' chief restructuring officer and team. An attorney for Ford Motor Credit said Monday that when Ford Credit staff members arrived at Reagor-Dykes dealerships in late July it was chaos. He said titles were scattered around dealerships, some stuffed in drawers. Ford Credit collected all the titles it could find.
Some lenders' attorneys pointed to the fact that Ford Credit took possession of titles that the registration process cannot move forward. An attorney for Ford Motor Credit said a list of titles in its possession has been provided to the CRO.
Another hearing on unpaid TT&L and trade-in liens is scheduled for Nov. 14. The goal is, before that date, to reach agreement with as many lenders as possible.