UPDATED: Reagor-Dykes Auto Group requests court to allow sale of - FOX34 Lubbock

UPDATED: Reagor-Dykes Auto Group requests court to allow sale of company

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LUBBOCK, Texas -

The Chief Restructuring Officer for Reagor-Dykes filed documents in bankruptcy court asking for approval to start bidding procedures for remaining assets. This would allow KamKad Automotive Holdings as a "Stalking Horse bidder" and allow a competitive bidding process to begin. A filing late Tuesday afternoon asks the court to consider this request at the next hearing already scheduled for Sept. 18. 

A Stalking Horse Bidder or "overbid protections" is an attempt by the debtor to test the market for the debtor's assets in advance of auction. According to court documents, "The procedures intended to enhance competitive bidding" and "ensure the sales price for the assets is the highest value possible." 

The debtors request the court approve the overbid protections, which includes a break-up fee of $750,000. This fee encourages a "white knight" bidder to enter the bidding by providing a form of compensation. 

By September 21, the documents show if the court approves KamKad, it will place into escrow a deposit of $1,000,000.  In a Non-Binding Letter of Intent between Kamkad and Reagor-Dykes, it states the purchase price is $25,321,520, plus assumed liabilities, and existing inventory payoff amount determined by Ford Motor Credit. 

Reagor-Dykes Auto Group asks the court to approve proposed sale transaction and bid procedures. A sale hearing would be on November 28, if approved.

SEPT. 4: Reagor-Dykes Auto Group establishes process to resolve customer problems
AUG. 31: International Bank of Commerce asks for court to allow it to foreclose on Reagor-Dykes dealerships
AUG. 31: More Reagor-Dykes companies, co-owners may soon file for chapter 11
AUG. 30: Court extends Reagor-Dykes employment of CRO; officer discusses potential dealership buyers
AUG. 29 : International Bank of Commerce asks for loan payment in Reagor-Dykes case
AUG. 29: Ford Credit objects to Reagor-Dykes earlier legal team
AUG. 27: Vista Bank doubles relief request in new federal suit against FirstCapital Bank
AUG. 25: Reagor-Dykes chief restructuring officer hires new legal team
AUG. 25: GM proceeding with termination of Reagor-Dykes Floydada
AUG. 23: Landlords demand rent for Reagor-Dykes dealerships in Lubbock, Plainview
AUG. 20: Ford Credit moves ahead with suit against Reagor, Dykes, some R-D companies
AUG. 18: Reagor-Dykes bankruptcy case: Read court order following Aug. 16 hearing
AUG. 17: Auto dealer claims Reagor-Dykes owes $513,000, vehicles may be in consumers' possession
AUG. 16: Vista Bank sues FirstCapital for $6 million, claims Dykes helped perpetrate check kiting scheme
AUG. 16: Bankruptcy court allows Reagor-Dykes continued use of cash collateral, hiring of CRO
AUG. 15: Reagor-Dykes Auto Group issues written apology
AUG. 14: Loss of Reagor-Dykes Chevrolet in Floydada a potential financial pitfall for city
AUG. 14: Vehicle auction company claims Reagor-Dykes owes it $687,000
AUG. 14: Ford Credit claims Reagor-Dykes is not following court orders; court grants extension to file docs
AUG. 13: U.S. Trustee opposes Reagor-Dykes request to hire chief restructuring officer
AUG. 10: Ford Credit: Reagor-Dykes fraud may be among largest of its type in U.S. history; GM files to terminate Floydada dealership
AUG. 9: Reagor-Dykes questions former CFO’s actions; Contractor claims $700,000 due now
AUG. 7: Former Reagor-Dykes employees claim they were not paid
AUG. 6: Customers concerned over Reagor-Dykes 'unwinding' process
AUG. 6: Ford suit against Reagor-Dykes on hold while bankruptcy case proceeds
AUG. 3: Judge approves Reagor-Dykes employee pay
AUG. 2: Mayor: Downtown Lubbock growth to remain strong regardless of Reagor-Dykes future
INITIAL STORY: Ford Motor Credit sues Reagor-Dykes; R-D files for chapter 11 bankruptcy

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