U.S. Trustee opposes Reagor-Dykes request to hire chief restruct

U.S. Trustee opposes Reagor-Dykes request to hire chief restructuring officer

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LUBBOCK, Texas -

A U.S. Justice Department Trustee opposes a request made by Reagor-Dykes Auto Group in Bankruptcy Court to hire a chief restructuring officer.

In a court filing Monday, the Trustee writes in support of Ford Motor Credit's petition to hire a chapter 11 trustee to oversee operations of the company instead of Reagor-Dykes' petition to hire an employee of BlackBriar as CRO.

From Monday's filing, "the Debtors [Reagor-Dykes companies] propose retaining a CRO whose expanded powers would permit him, among other things, to independently investigate Debtors' prior financial transactions and their owners and officers. Such duties belong to a chapter 11 trustee or an examiner, not a CRO. For this reason, the Court should deny the Debtors' application to employ a CRO."

Last week Reagor-Dykes' filing indicated the CRO would "investigate the potential for any wrongdoing by the Debtors' [Reagor-Dykes] former CFO and Ownership, to stabilize the Debtors accounting functions, to immediately put into place strong accounting controls, and to provide CFO support upon the departure of the Debtors' former CFO."

Also, Reagor-Dykes filed notice 341 creditors meetings that were scheduled for Sept. 6 have been rescheduled by the U.S. Trustee's Office to Sept. 27.

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

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