Ford v. Reagor Dykes lawsuit updated, plans will be made to sell dealerships

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Ford Motor Credit Company continues its lawsuit against Reagor Auto Mall, Reagor Dykes II, LLC, Reagor Dykes III, LLC, Bart Reagor and Rick Dykes.  

Many, but not all of the Reagor Dykes companies filed for bankruptcy on August 1. On July 31, Ford accused RD of defaulting on roughly $40 million of debt. Later, Ford accused RD of outright fraud.

On Friday, Ford amended its lawsuit. The RD companies that are currently in bankruptcy have protection against the lawsuit.  But Bart Reagor, Rick Dykes and the non-bankrupt companies are still subject to the lawsuit.

The amended lawsuit said RD defaulted on $40,434,000 rather than $41,734,000.  The amended lawsuit said RD had a total estimated debt of $113,374,000 instead of $116,168,000.

In the bankruptcy case, a written order was added Friday.  It spells out instructions for a Chief Restructuring Officer which the judge authorized RD to hire.  

The written order said the CRO should “develop and implement a plan for the sale of all assets and the transfer of all automobile dealership franchise rights…” 

The written order also said the CRO should recommend adjustments to compensation for all officers and employees of the bankrupt RD companies.

RD has authority to spend money for employee wages and other immediate expenses until August 30 when another bankruptcy hearing has been scheduled.

Related Stories: Reagor Dykes – extended coverage of the bankruptcy   

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