Ford Credit won't approve proposed Reagor-Dykes Auto Group reorganization, asks to seize assets
LUBBOCK -- Ford Motor Credit Co. requested permission to seize its Reagor-Dykes Auto Group collateral, citing no confidence in the proposed, but not officially filed, reorganization plan for the auto group.
The Friday filing in bankruptcy court included a three-page memorandum dated Nov. 28, 2018 that briefly outlines the reorganization plan backed by investors Marc McDougal, Fin Ewing III and Rick Dykes. The plan was publicly announced in court on Nov. 29, but has not been filed.
“At this date, any plan of reorganization proposed by Debtors is certainly not in ‘prospect,’” the filing from Ford Credit states.
The plan states the McDougal-Dykes-Ewing Group would invest $20 million cash in Reagor-Dykes dealerships. Half of the $20 million would be earmarked for payments related to the Chapter 11 bankruptcy case, like partially paying Ford Credit and GM Financial. The McDougal-Dykes-Ewing Group would assume the balance of debt owed to floor plan financiers.
Read more: https://www.lubbockonline.com/news/20190104/ford-credit-wont-approve-proposed-rdag-reorganization-asks-to-seize-assets
