Reagor Dykes bankruptcy continues, U.S. Trustee asks to convert case
Reagor Dykes Auto Group got the creditor votes it needed to reorganize the business, but the U.S. Trustee’s office filed a motion Tuesday to convert the case to a liquidation bankruptcy.
The reorganization plan was set to be heard in bankruptcy court Wednesday, but the debtors last week asked for more time to work on their presentation.
An amended version of the plan filed Tuesday shows several changes, including the departure of Rick Dykes as a potential plan sponsor.
A confirmation hearing is expected to happen early next year.
The motion filed by the U.S. Trustee to convert the Chapter 11 bankruptcy to Chapter 7 states seven bankrupt dealerships have collectively seen a net loss of more than $15.7 million as of October - 14 months after the initial bankruptcies were filed.
Read more: https://www.lubbockonline.com/news/20191211/reagor-dykes-bankruptcy-continues-us-trustee-asks-to-convert-case
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11th former Reagor Dykes employee pleads guilty
Another Reagor Dykes employee has pleaded guilty in Amarillo federal court to wire fraud.
Whitney Maldonado pleaded guilty on Dec. 3 to one count of conspiracy to commit wire fraud. She faces up to five years in prison and more than $27 million in fines and restitution. Maldonado will be sentenced in April 2020, according to court records.
Maldonado was the office manager at Reagor Dykes Imports, the Mitsubishi dealership in Lubbock.
Eleven total former Reagor Dykes employees have pleaded guilty to fraud charges. Seven, including Maldonado, have pleaded guilty to conspiracy to commit wire fraud for their role in a double-flooring vehicle scheme that defrauded Ford Motor Credit Co.
Read more: https://www.lubbockonline.com/business/20191213/11th-former-reagor-dykes-employee-pleads-guilty
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