Bank wants Reagor Dykes to pay rent to avoid foreclosure

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International Bank of Commerce on Wednesday filed a motion in bankruptcy court to make Reagor Dykes pay rent. For now, the bankruptcy court has given permission for Reagor Dykes (RD) to pay immediate expenses such as employee wages, but rent has been excluded. 

International Bank of Commerce (IBC) on Wednesday said, “Recently, IBC and RDAG entered into an approximately $35 million credit facility.”

IBC lent money to a pair of RD companies that are not in bankruptcy.  Those companies, according to court records, “are the owners of most of RDAG’s real property, including, … the vast majority of … [RD’s] automobile dealerships.”

In other words, some of the RD dealerships pay rent to two RD real estate companies. But if the bankruptcy court does not authorize rent payments, then the RD real estate companies cannot make loan payments to IBC.

IBC said foreclosure, if it comes to that, would make a mess for everyone. 

IBC requested that the bankruptcy court, “provide for full and timely rent payments.”

A list of RD companies filed for bankruptcy on August 1. Ford Motor Credit accuses RD of defaulting on $40 million and committing fraud.  Ford called it one of the biggest fraud cases of its kind in the history of the United States. 

Related Stories: Reagor Dykes – extended coverage of the bankruptcy

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