EverythingLubbock.com learned on Thursday that the McDougal Companies have been invited to a meeting next week in Dearborn, Michigan with Ford. The meeting is reference to possibly purchasing the Reagor Dykes dealerships.
The McDougal Companies and Finn Ewing will be part of the meeting, but Rick Dykes was not mentioned by our source as a potential participant.
In bankruptcy court on Wednesday afternoon, lawyers spoke of an “expression of interest from another buyer,” and there was mention of an upcoming meeting with Ford on January 29. However, other details had been withheld during the court hearing.
Reagor Dykes filed for bankruptcy on August 1 after allegations of default and fraud.
In November, there was a proposal for KamKad Automotive to purchase the Reagor Dykes dealerships at auction during the bankruptcy process. KamKad was offering $25 million. That deal fell apart, and the McDougal-Dykes-Ewing group put forward a proposal.
But Ford objected in court records because the deal involved Rick Dykes. Not only did it involve Rick Dykes, but it would have called for Mr. Dykes and Bart Reagor to be absolved of their debts to Ford.
After this story was published, the McDougal Companies released fhe following statement:
On November 26, 2018, Marc McDougal received a call asking if the McDougal Companies would help try to salvage the Reagor-Dykes operations as it worked through the bankruptcy process. The hope was McDougal would agree to help raise operating capital and manage the Reagor-Dykes real estate. McDougal was told that the Ewing Auto Group, a highly respected and experienced automotive dealer from Dallas, was considering managing future automobile sales and service operations.
Since that time, McDougal Companies executives have had dozens of meetings and calls with the Debtor’s counsel, the Chief Restructuring Officer, and with stakeholders that have money tied up in the R-D operation. We also met with numerous investors who might be interested in helping put a deal together to create a new ownership group that can take over the operations, help consumers, and save the jobs of the many West Texans employed by the multi-city automotive company.
The problems created by this situation are many and varied. A solution to them will require meaningful efforts by a group with sincere interests in fixing them. Without that, they don’t get fixed.
McDougal Companies and Ewing Auto Group have been invited to Dearborn, Michigan by Ford Motor Credit to attend what they are describing as a “global settlement” meeting. McDougal Companies executives will attend to express our thoughts on a productive path forward a path that includes jobs, consumer issues, and affected creditors. We expect to hear new things from Ford regarding their willingness to solve problems. If we do not, it will be a short meeting.