Reagor Dykes can take a loan, judge rules, to pay immediate expenses

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A bankruptcy judge on Wednesday ruled Reagor Dykes could take out a loan.  Since August 1, RD companies have needed permission from a bankruptcy judge to spend money.  On Tuesday, RD filed an emergency motion for “post-petition financing.”

The emergency motion indicated that Rick Dykes and Bart Reagor would put up a $1 million loan.  The motion said IBC Bank would loan up to $3.75 million.

Dykes and Reagor already put up a $1 million retainer back in August.  The loan will come from the unspent portion of that money. 

Roughly $250,000 of the retainer is set aside for attorney fees.  The judge, during a hearing on Wednesday, allowed the use of the $1 million but did not rule yet on the potential loan from IBC Bank. There was an indication that loan money would need be approved in stages. 

The money that was approved by the judge was thought to be enough to keep RD operating for a few weeks. 

Issues left over from a court hearing on Tuesday have not yet been decided by the judge.  Among other things, Ford wants permission to take back vehicles from RD dealerships.

Related Stories: Reagor Dykes – extended coverage of the bankruptcy  

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