Liberty Capital Bank in Addison filed an objection against Reagor Dykes in bankruptcy court on Monday.
Liberty claimed it provided floor-plan financing to Reagor Dykes Automall (RDAM) with a location in Addison which is in Dallas County.
Liberty said the money it provided to RDAM was supposed to pay off the liens on trade-in vehicles or vehicles purchased at auction.
Liberty said the money, “never reached their intended recipient.” Liberty said it can trace the money only as far as FirstCapital Bank but no further.
Liberty has not yet said how much money it lent to RDAM, and the Reagor Dykes companies have until mid-September to submit a creditor list in bankruptcy court.
“As the Court may be aware, First Capital Bank is known to have held accounts of the [Reagor Dykes], and upon information and belief, at least one principal of the Debtors is a substantial shareholder of First Capital Bank,” Liberty said.
That’s a reference to Rick Dykes who until recently was on the FirstCapital board of directors.
“In candor to the Court, Liberty is unable to presently prove with certainty where the money went at all after the money was received by First Capital Bank,” Liberty said.
Liberty wants a bankruptcy judge to order Reagor Dykes to not use any cash that belongs to Liberty as cash collateral.
A bankruptcy court hearing on Reagor Dykes has been scheduled for Thursday, August 30. The objection raised by Liberty could be added to the list of items for discussion in the hearing.
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