Reagor Dykes objects to proposed loss of bankruptcy protections

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Reagor Dykes on Thursday filed an objection to the possibility of lifting bankruptcy protections. 

Nyle Maxwell of Taylor, LLC, was the first but not the only creditor to request that certain bankruptcy protections be removed from Reagor Dykes (RD).  RD specifically responded to the Nyle Maxwell request, but presumably many of the same arguments could apply to the other requests.

Related Story: Here is the list of claims so far against Reagor Dykes in bankruptcy court

“If any Debtor ever needed the breathing room provided by the automatic stay, these Debtors do,” RD’s court-appointed Chief Restructuring Officer said in the objection. “No single creditor should be allowed to disrupt the orderly process…”

A proposed sale was disclosed in court records this week and will be the subject of a court hearing on September 18.

The objection also said Nyle Maxwell’s request “would destabilize the proposed sale process already in motion…” 

It would also, “… upend [RD’s] plans for a regulated, equitable process supervised by this Court to determine the priority of competing interests in favor of haphazard and piecemeal proceedings.”

The objection also said Nyle Maxwell should not get priority over Ford, or customers or others. 

“That chaotic state of affairs is precisely what the automatic stay is designed to prevent,” the objection said.

Related Stories: Reagor Dykes – extended coverage of the bankruptcy 

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