LUBBOCK, Texas — Reagor Dykes and First Bank & Trust finalized a compromise Tuesday afternoon in bankruptcy court. The compromise was estimated to have a value of between $4.2 to $5 million.
The counsel for Reagor Dykes said everyone is pushing to get out of bankruptcy.
“We did the settlement as best we could,” the counsel added.
The honorable Robert L. Jones bankruptcy judge also raised questions about the “avoidance of liens” mentioned by counsel on behalf of FB&T.
A lien is any official claim or charge against property or funds according to the law.com website.
Jones added that Reagor Dykes would not be able to go against FB&T for a proof of claim, because they would go away in the settlement.
“I’m satisfied this does benefit the debtors and creditors,” said Jones.
A hearing on Friday related to the dispute was canceled.
Reagor Dykes filed for bankruptcy in August 2018 after Ford Motor Credit Company said there was fraud. A plan has been offered in bankruptcy court to reorganize Reagor Dykes. The bankruptcy, as of Tuesday, was still ongoing.