LUBBOCK, Texas — The Reagor Dykes companies filed a second bankruptcy plan in court records on Tuesday. The first plan was not accepted by the bankruptcy court.
Reagor Dykes filed for bankruptcy in August 2018 amid allegations of fraud and default brought by Ford Motor Company.
The plan calls for Auto Investment Group and SLJ Company to recapitalize the various Reagor Dykes Dealerships with $13 million in exchange for 90 percent equity.
“Henry Resources is the primary investor in the Auto Investment Group,” court records said. SLJ Company was not clearly defined in the plan’s disclosure statement but records from the Texas Secretary of State indicated SLJ is a Dallas-based company.
The previous plan featured Rick Dykes prominently. The second plan still mentions him as a possible plan sponsor if SLJ declines to participate.
“Rick Dykes is not an investor in Auto Investment Group or SLJ Company,” the plan said.
Money to pay off certain creditors “will include $1 million in cash contributed by Rick Dykes.”
Bart Reagor is mentioned in the plan, but only insofar as he will likely lose all the money Reagor Dykes owes him. He was not mentioned as plan sponsor.
Ford, far and away the biggest creditor, will get $5 million if it agrees to go along with the plan and authorize the dealerships to do business with Ford. GM gets $1.5 million on the condition of approving a dealership agreement.
The plan said if reorganization under Chapter 11 Bankruptcy fails then the plan is to liquidate what’s left of Reagor Dykes.