In a bankruptcy court hearing Thursday afternoon in Lubbock, a proposed sale of Reagor Dykes dealerships was “abated” or put off. KamKad Automotive had been a bidder for more than $25 million.
Two separate lists of Reagor Dykes companies have filed for bankruptcy since August 1. Ford Motor Credit Company accused Reagor Dykes of default and fraud.
Since the KamKad proposal was taken off the table, a plan was presented in court for a different way to sell off the Reagor Dykes assets. The plan is not final, and Ford objects.
Former Lubbock Mayor Marc McDougal, Rick Dykes and an investor from Dallas would reorganize the business. Bart Reagor would step aside.
Reagor Dykes is currently under the direction of a Chief Restructuring Officer. An attorney for Reagor Dykes and the CRO said in court Thursday that more work needs to be done, and he plans to file a Chapter 11 bankruptcy plan.
Prior to the hearing, the McDougal Companies said in a written statement, “Because it is important to local lenders, to Downtown Lubbock redevelopment, and to hundreds of local and regional jobs, we agreed to discuss a role in helping secure the viability of these properties and dealerships.”
This is a developing story. EverythingLubbock.com will provide updates.
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