An investment company and a real estate company filed a motion Thursday morning in bankruptcy court to compel Reagor Dykes to accept or reject two leases in Southwest Lubbock.
A list of Reagor Dykes (RD) companies filed for bankruptcy on August 1, which was shortly after Ford Motor Credit Company sued RD. Ford claimed RD defaulted on roughly $40 million of debt. Later, Ford accused RD of outright fraud.
RD companies in bankruptcy have been given permission to pay pressing expenses such as employee salaries. However, RD was not given permission to pay rent during an August 16 court hearing.
The motion Thursday morning by Eighty Second Street Investments, LLC, and Lubbock Windmill Real Estate, LLC, said RD leased two properties in the 6500 block of 82nd.
Rent for those properties are “in the amounts of $20,000.00 and $35,000.00, respectively” per month.
The motion said, “On or shortly after this case was filed, representatives of … [RD] represented to James J. (Jim) Burns, Managing Member of Lessors, that the rent then due and for August of 2018 would be paid. Though having represented that Lessors’ checks were in the mail, they in fact were not.”
The motion said a promise was made that the payment of rent would be authorized by the bankruptcy court. That did not happen.
Eighty Second Street and Windmill said they are now borrowing money to meet obligations instead of relying on rent money from RD.
“[Eighty Second Street and Windmill] pray for an Order compelling … [RD] to either immediately cure any and all defaults and accept the Leases herein described, or reject said Leases in order that [Eighty Second Street and Windmill] might expeditiously re-lease the property,” the motion said.
In other words, they’re asking RD to pay up or get out. This particular issue has been set for a hearing on September 19 in bankruptcy court.
UPDATE: Late Thursday morning, the estate of M.I. “Jack” Morris filed an objection in bankruptcy court saying RD owes $6,500 per month rent on a property in Plainview.
Related Stories: Reagor Dykes – extended coverage of the bankruptcy