LUBBOCK, Texas — Court records were filed Thursday in the bankruptcy of Reagor Dykes with an amended Chapter 11 plan. It calls for the liquidation of Reagor Dykes and the “orderly wind down” of operations.
It also calls for a consumer ombudsman to settle issues related to consumers not getting titles to their vehicles. Rick Dykes agreed to put up $100,000 to pay for the consumer ombudsman.
The plan creates a creditors trust. In other words, whatever money can be salvaged will go into the trust to be paid back to creditors. It prioritizes who is the first to be paid back and who is at the bottom of the list. Taxing entities such as Lubbock County are at the top.
Reagor Dykes filed for bankruptcy on August 1, 2018. According to many, many court records, the Lubbock-based company was engaged in multiple forms of fraud. To date, twelve former employees admitted to committing crimes.
Prior to the bankruptcy, Reagor Dykes operated 13 automotive dealerships.
CLICK HERE to read the amended Chapter 11 plan for liquidation.