Reagor Dykes can pay employees through August 30, judge says

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A list of Reagor Dykes companies appeared Thursday morning in bankruptcy court for a hearing on the continued use of cash to pay salaries and other imminent expenses, the possible appointment of a bankruptcy trustee, and the possible appointment of a CRO or Chief Restructuring Officer.

Reagor Dykes (RD) filed bankruptcy on August 1 after Ford Motor Credit Company accused RD of defaulting by $40 million or more.  In the time since then, Ford accused RD of outright fraud.

In the first week of August, RD and Ford reached an agreement so RD could pay employees and a few other immediate expenses.  In court Thursday morning, RD and Ford told the judge they have agreed to pay employees through August 30.  On that day there will be another hearing in bankruptcy court.  

The bankruptcy judge also put off the decision to appoint a trustee until August 30. 

RD and Ford have not yet agreed that RD can pay rent on September 1.  That issue is still under negotiation between the two sides.  

The two sides agreed to employ a company called BlackBriar to act as a CRO.  However, the CRO would act as an advisor and to gather information.  The CRO would not do the long list of things RD had originally requested.

Two taxing districts, Midland County and Floyd County, also raised concerns in court records recently.  In the hearing, the concerns were brought up, and it was said there would be discussions with the taxing districts.  

Related Stories: Reagor Dykes – extended coverage of the bankruptcy

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