More Reagor-Dykes companies, co-owners may soon file for chapter

More Reagor-Dykes companies, co-owners may soon file for chapter 11

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LUBBOCK, Texas -

Senior U.S. District Judge Sam Cummings has granted an extension for some Reagor-Dykes entities to respond to Ford Motor Credit's lawsuit. 

Ford Credit filed suit against Reagor-Dykes July 31. The next day several, but not all, Reagor-Dykes companies filed for bankruptcy protection. This effectively put Ford Credit's lawsuit on pause. However, Ford Credit is moving ahead against the individual owners and the companies not involved in bankruptcy proceedings. Specifically this is against: Reagor-Dykes Auto Mall I, L.L.C., Reagor-Dykes II, L.L.C., Reagor-Dykes III, L.L.C., Bart Reagor and Rick Dykes.

In the request for an extension it's noted that the above Reagor-Dykes companies as well as Reagor and Dykes individually may file for chapter 11 protections:

"The Defendants are (i) entities that may be filing chapter 11 petitions and have been involved in the chapter 11 cases of the Debtors, and (ii) are individual owners integrally involved in the reorganization efforts of the Debtors and have been able to spend insufficient time aggregating information to accomplish a full-fledged answer with affirmative defenses and if available counterclaims. Because of the focus on reorganization efforts, the Defendants, who have been working in consult with the Debtors’ Chief Restructuring Officers have been unable to obtain sufficient information to deal with this litigation."

The judge has extended the deadline for defendants to respond to Sept. 14. The defendants had requested an extension until Oct. 1.

As we reported Aug. 20, while the lawsuit is moving forward against just the entities listed above, Ford Credit provided an overview of amounts owed by each dealership as of July 31. These figures include dealerships covered in bankruptcy proceedings.

According to Ford Motor Credit's lawsuit
Dealership Estimated Amount Outstanding

Amount Currently Due

RD Motors $35,821,000.00 $8,416,000.00
RD Amarillo $9,324,000.00 $3,795,000.00
RD Imports $12,893,000.00 $6,137,000.00
RD Auto $20,140,000.00 $6,075,000.00
RD Plainview $16,035,000.00 $5,407,000.00
RD Floydada $19,161,000.00 $10,604,000.00
totals $113,374,000.00 $40,434,000.00

Ford Credit's filing states interest continues to accrue. Also, Ford Credit lists outstanding principal indebtedness as $3,916,671.00.

Ford Credit is asking for a jury trial. Judge Cummings earlier ordered Ford Credit to provide documents to the court by Sept. 10.

Also, counsel for the Texas Comptroller's Office filed notice Friday of appearance in the bankruptcy case, requesting all documents filed in the case be forwarded to the Comptroller's Office.

Here is the request for extension:

Here is the judge's order granting an extension:

THU: Court extends Reagor-Dykes employment of CRO; officer discusses potential dealership buyers
WED: International Bank of Commerce asks for loan payment in Reagor-Dykes case
WED: Ford Credit objects to Reagor-Dykes earlier legal team
MON: 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

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