Reorganization plan in the works for Reagor-Dykes
Counsel for Reagor Dykes Auto Group announced in Lubbock’s federal bankruptcy court Wednesday that a plan for the debtors to exit bankruptcy is in the works, and should be filed soon.
A document establishing a timeline to exit bankruptcy was filed before the bankruptcy court hearing. The plan will be filed by July 1, and confirmation of the plan will happen in September.
Details are still being worked out, Reagor-Dykes bankruptcy lawyer C. Ashley Ellis said in a court update, but efforts are moving in the right direction. Ellis said they are working with four unnamed equity partners. The reorganization group is trying to identify a plan sponsor, who Ellis said will be one of the four partners.
The new investors have required that Rick Dykes remain a partner in the business, which was a hang-up in a previously proposed reorganization plan that fell apart. Major creditor Ford Motor Credit Co. opposed Dykes’ continued involvement in the business. Since Dykes settled with Ford Credit in a separate civil lawsuit, Ellis said they are no longer against him staying on. Bart Reagor bowed out of the business early in the bankruptcy.
Read more: https://www.lubbockonline.com/news/20190619/reorganization-plan-in-works-for-reagor-dykes
