Objections remain in Reagor-Dykes' path to reorganization
This is not the first time you've heard this. There are still unresolved issues in Reagor-Dykes' path to reorganization to emerge out of bankruptcy.
During a hearing in bankruptcy court in Lubbock, an attorney for the Auto Group again pointed to just how convoluted the case is and why nearly each step takes so long to complete. "This case is different than most cases," attorney Marcus Helt said.
While several objections filed in recent weeks have been removed, Ford Credit still has objections filed. This is not necessarily to solely the reorganization plan itself, but also its associated disclosure statement. Other creditors have removed objections at this juncture, planning to raise issue later, when it comes time to confirm the plan.
While an attorney for Ford Credit laid out some of the concerns, the hearing Thursday did not appear to be called to resolve the issues. Rather, Judge Robert Jones asked Reagor-Dykes' legal team to present its latest reorganization plan, disclosure statement and associated documents soon. He will then review the disclosure statement, likely some time next week.
The goal for Reagor-Dykes is to present the full plan, with a new investor identified as a "plan sponsor" in the coming weeks, to be confirmed by many involved parties. At earlier hearings and in court filings, attorneys for the Auto Group said and wrote this would maximize value of the estate and, therefore, be of greatest benefit to creditors, affected customers, former and current employees, and the communities in which the dealerships operated.
Also, Helt said Reagor-Dykes and the "plan sponsor" are scheduled to meet with vehicle manufacturers Ford and Mitsubishi next week; a meeting with General Motors may also happen. This is to discuss transferring franchise agreements to the reorganized company. A meeting with International Bank of Commerce is also planned, to discuss acquisition of real estate.
If the reorganization plan does not succeed, the case will transfer to chapter 7 liquidation. A Ford Credit attorney also informed the judge the company has issues with how liquidation is detailed in the recently submitted reorganization plan and disclosure statement.
Other items on Thursday's docket in this case were passed to a later date.