LUBBOCK, Texas — Reagor Dykes on Tuesday filed an update to its reorganization plan in bankruptcy court.
Rick Dykes is no longer listed as a “released party” in the updated plan. That means he does not get automatically released from liability as part of the plan. Dykes is also no longer listed as a potential plan sponsor. It also said Mr. Dykes does not get equity in the re-organized company. The idea that Dykes would get equity caused multiple creditors to object.
Dykes would still contribute $1 million. It would be earmarked for resolving tax, title and license issues for customers.
Reagor Dykes filed for reorganizational bankruptcy in August 2018. The Lubbock-based auto dealerships were accused of fraud, bank fraud and default.
The company also filed court records on Tuesday saying it had enough votes from creditors to approve the latest reorganization plan. Objections have been raised and a judge has not ruled.
A summary of objections and responses is COPIED HERE.