LUBBOCK, Texas — A bankruptcy judge on Friday approved the final plan for Reagor Dykes. The Lubbock-based chain of auto dealerships filed for bankruptcy in August 2018 amid accusations of fraud and default.
The case was originally filed as Chapter 11 reorganization. Technically, the plan is still filed under Chapter 11 of the U.S. bankruptcy code, but no reorganization is still on the table. Instead, the plan approved on Friday is for liquidation.
All of the remaining assets, claims, accounts payable and so forth will be placed into the hands of a trustee. The trustee will then pay the Reagor Dykes creditors in order of priority set out in the plan.
Taxes are the highest claim followed by secured debts.
For all practical purposes, Bart Reagor and Rick Dykes are at the bottom of the list of people to get paid.
The judge noted in his order on Friday that the Reagor Dykes bankruptcy estate has pending claims against nearly 50 businesses or persons. Among them is a claim by the Reagor Dykes estate that Ford Motor Credit Company allowed fraud to occur. As such, Ford should be held responsible for about $315 million, according to the claim.
Ford has not responded to the $315 million claim in court records.
CLICK HERE to read a copy of the plan.
CLICK HERE to read the judge’s order.