Ford Motor Credit Company filed an objection over the weekend to the proposed sale of Reagor Dykes (RD) dealerships.
Ford does not object to the basic idea of selling 13 RD dealerships. However, Ford said the proposed “stalking horse” bidder does not have a contract with Ford.
“Ford Credit objects to the designation of a bidder as a Stalking Horse Bidder until the
proposed lead bidder has entered into the binding Asset Purchase Agreement,” Ford said.
Gulf States Toyota raised a similar objection on Friday (in reference to the RD location in Plainview). Toyota said no one gets to be an authorized Toyota dealer without Toyota’s permission.
On July 31, Ford accused RD of defaulting on roughly $40 million of debt. The very next day, a list of RD companies filed for bankruptcy.
More recently, RD’s court-appointed Chief Restructuring Officer proposed an auction with KamKad acting as a stalking horse bidder. The KamKad bid starts at more than $25 million.
KamKad has Alfa Romeo and Hyundai dealerships, according to its website but not Ford, GM or Toyota.
The bankruptcy court set a hearing for Tuesday (September 18) to talk about the proposed auction.
Related Stories: Reagor Dykes – extended coverage of the bankruptcy