Ford Motor Credit Company on Monday turned up the pressure on Bart Reagor and Rick Dykes personally in federal court.
On July 31, Ford sued a list of Reagor Dykes (RD) companies as well as Mr. Reagor and Mr. Dykes. The companies have since filed for bankruptcy and are therefore protected from lawsuits.
But Mr. Reagor and Mr. Dykes have not filed for personal bankruptcy and are therefore not protected.
In the original lawsuit, Ford accused RD of defaulting on $40 million or more of debt. The total debt from Ford to RD was estimated at $133 million.
Ford also accused RD of outright fraud. Separately, three local banks accused RD of bank fraud in the form of check kiting.
Long before fraud allegations surfaced, Dykes and Reagor both signed contracts with Ford saying not only are the dealerships responsible for paying back Ford, but they are too.
Ford said the personal guarantees by Dykes and Reagor are undisputed. For that reason, the newest court records said, a federal judge should order the two men to pay back Ford now without having to take the case to trial.
Attorneys for Ford wrote, “While Defendants have sought to blame their Chief Financial Officer for the systemic sales out of trust, double-flooring, and other acts committed by the Reagor-Dykes Dealerships, Mr. Dykes and Mr. Reagor cannot dispute they were the owners and operators of the Dealerships – and they have admitted that they guarantied the amounts owed by the Dealerships to Ford Credit.”
Mr. Reagor and Mr. Dykes have not filed a response to Ford’s latest request.
Separately, the bankruptcy case is still pending.