Five more Reagor-Dykes entities petition for bankruptcy - FOX34 Lubbock

Five more Reagor-Dykes entities petition for bankruptcy

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LUBBOCK, Texas -

Five more portions of the Reagor-Dykes Auto Group filed for bankruptcy Friday, making eleven total entities asking for federal Chapter 11 protections.

The new petitioners are Reagor Auto Mall, Reagor-Dykes Auto Mall, Reagor-Dykes II, Reagor-Dykes III, and Reagor-Dykes Snyder. Reagor Auto Mall does business as Reagor-Dykes Levelland and Reagor-Dykes Imports.

BlackBriar Advisers, the company's corporate restructuring officer, signed the petitions.  Each petition claims one to 49 creditors, and $10 million to $50 million in both assets and liabilities.

The original six petitions were filed August 1, after Ford Motor Credit sued the auto group citing "perhaps the largest floor plan financing fraud" in the nation's history, with $116 million dollars owed to the credit agency.

This filing could have a rippling effect through the other cases related to Reagor-Dykes; a court-ordered compromise between First Bank & Trust, Reagor Auto Mall, and FirstCapital Bank is likely nullified, as all RAM's vehicles would become part of the bankruptcy estate.

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