Ford Credit takes issue with First Bank & Trust's liquidation request
In a new court filing, Ford Motor Credit Company takes issue with statements First Bank & Trust made in its motion to convert the Reagor-Dykes Auto Group bankruptcy to chapter 7 liquidation. It states there are no claims to pursue against Ford Credit, that Ford Credit is a victim and did not perpetrate or help perpetrate fraud.
First Bank & Trust asked Judge Robert Jones to throw out the business' re-organization plan. As one of the creditors, the bank's legal team claims it would be better to sell everything off.
Attorneys for Reagor-Dykes responded there is no legitimate reason to move to Chapter 7 now, asking any hearing on the matter to be held after re-organization confirmation in mid-December. Ford Credit now also requests a hearing on the move to Chapter 7 be pushed back to the same date as plan confirmation, December 11.
Ford Credit claims First Bank & Trust's motion contains inaccuracies, including "insinuating that Ford Credit is somehow tied to Debtors' fraud perpetrated on Ford Credit".
While these developments are what's happening in bankruptcy court, Ford Credit lays out developments this year in U.S. district court, in Ford Credit's suit vs. Bart Reagor and Rick Dykes. Dykes reached a settlement to pay $58,712,000 to Ford Credit in April. A jury last week ordered Reagor to pay y$53,759,450.96 to Ford Credit.
Ford Credit also list criminal actions, the five people who have pleaded guilty to their roles in massive fraud at the Auto Group.
Ford Credit's attorneys write First Bank & Trust "takes liberty with a number of its factual allegations and implies that Ford Credit’s “suspicious” pre-petition activities give rise to claims that 'might yield substantial recoveries.' The judicial record in the Criminal Actions and the jury verdict against Bart Reagor in the
District Court Action prove the inaccuracy of the implications in the Motion to Convert."
Ford Credit also states that, as part of his agreement, Dykes withdrew an affidavit in which he made allegations against Ford Credit similar to what First Bank & Trust alleges, that Ford Credit was complicit in the fraud.
The creditor states, as a lender, it has no duty to the debtors or others to audit the dealerships' inventor for the benefit of debtors or others.