Universal Service Underwriters Corporation filed documents Wednesday in bankruptcy court against Reagor Dykes. Universal sells vehicle service contracts, limited warranties and other consumer protection products.
Universal said in court records that Reagor Dykes (RD) owes $664,720. Universal made a motion in bankruptcy court for RD to either pay up or abandon the contract.
For now, Universal has to honor its part of the deal even though RD owes the money. If Universal is granted permission from the bankruptcy judge, it can cancel the deal with RD.
On July 31, Ford Motor Credit Company sued a list of RD companies for default on roughly $40 million of debt. Some but not all of the RD companies then filed for chapter 11 bankruptcy the next day.
On Thursday, a court hearing will address two issues. The office of United States Trustee objects to certain aspects of RD having a Chief Restructuring Officer. And, Ford objects to certain aspects of RD’s motion to change attorneys.
Related Stories: Reagor Dykes – extended coverage of the bankruptcy