Gulf States Toyota filed an objection late Friday afternoon in the Reagor Dykes Bankruptcy case. The objection said a Toyota dealership in Plainview cannot be sold off to another company without Toyota’s pre-approval.
A list of RD companies filed for bankruptcy on August 1. More recently, a proposal was listed in the bankruptcy records to auction off 13 RD dealerships for $25 million or more.
Toyota’s objection said Reagor Dykes Toyota of Plainview is already in violation of a dealership agreement because of decisions that have been made in bankruptcy court.
Even without those problems, Toyota said the dealership agreement will expire on November 8, 2018. So, the new owner will not have the right to sell new Toyotas without a new agreement anyway.
The objection said, “Bankruptcy courts have routinely recognized that the filing of a bankruptcy petition does not grant a debtor the right to extend the term of an agreement beyond its express terms.”
Toyota also said if the bankruptcy court does not address the problem, then the sale of dealerships, including the Toyota dealership, is “destined to fail.”
A court hearing on the possible sale of RD dealerships is set for September 18.
Correction: In the original version of this story the word without was written as with. It has been corrected.