On Monday evening, Vista Bank filed a document electronically in bankruptcy court that showed Reagor Dykes defaulted on a $2 million loan.
Vista Bank said on June 6, 2017, RD took out a $2 million loan that was due one year later. Then, in June of 2018, the loan was extended for another year.
Court documents said RD put up a certificate of deposit (CD) for $2 million as collateral. However, because RD filed for bankruptcy, Vista would need permission from the bankruptcy judge before taking the CD.
A list of RD companies filed for bankruptcy one day after Ford Motor Credit Company accused RD of defaulting on roughly $40 million.
The terms of the loan with Vista said that insolvency would be considered a form of default.
“Debtors [Reagor Dykes] have defaulted on the Note which accelerated upon the Debtors’ bankruptcy…,” the Vista motion said.
Vista said the outstanding principal on the loan was $1,957,227.52. An amount of $42,772.48 was un-advanced when the loan was made. The interest is $163 per day, according to Vista’s request.
CLICK HERE to see the updated document filed by Vista.
Separately, Vista sued FirstCapital Bank in August – saying FirstCapital manipulated bounced checks from Reagor Dykes to make Vista suffer a $6 million loss. FirstCapital denied the allegation by saying it simply used proper procedures to dishonor checks from RD.
The bank lawsuit is still ongoing.
UPDATE AND CLARIFICATION: The original version of this story quoted a court document from Vista which said, “On June 6, 2018, the Debtors failed to repay the Note, defaulting on the Note.”
A few hours later, Vista updated its court filing, and this story was updated. According to the updated filing, Reagor Dykes was not in default until August 1.
Related Stories: Reagor Dykes – extended coverage of the bankruptcy