Hearing to confirm Reagor-Dykes plan pushed back

Hearing to confirm Reagor-Dykes plan pushed back

Posted: Updated:
LUBBOCK -

U.S. Bankruptcy Judge Robert Jones granted a continuance to Reagor-Dykes as it seeks to re-organize into a viable business with new capital infusion and new management. Wednesday's hearing at the federal courthouse in Lubbock included a motion to delay the confirmation hearing.

Now that the continuance was granted, there will be a conference update January 7, followed by another hearing later in the month. We reported last week Reagor-Dykes reported progress but needed more time before a hearing to confirm or reject the plan. 

Reagor-Dykes has a majority of votes from creditors approving re-organization, according to a tally filed Tuesday. It reports 55 votes approving the plan, 23 rejecting it. The problem is some of those 23 rejections are critical to the plan's success, including Ford, Toyota and General Motors.

Following Judge Jones' request Wednesday, Reagor-Dykes will again make changes to re-organization plan, dropping the language that includes liquidation. This means the plan that will be presented in January outlines re-organization. If it is rejected, the case will convert to liquidation. 

In a filing in this case Tuesday, a U.S. Trustee stated the federal government wants to move forward with liquidation. It claims the Auto Group's estate is continuously losing value. The Trustee does not think it will successfully reorganize.

The government claims the estates have lost millions of dollars in value and it has missed too many deadlines the trustee set for it. The Justice Department claims Reagor-Dykes has lost more than $15 million in value between August 2018 and November 2019.

The goal of the bankruptcy proceeding is to maximize value, whether through reorganization, liquidation or other means, to settle claims. Many creditors have large claims filed against the Reagor-Dykes estate.

In Tuesday's filing, the U.S. Trustee wrote the government is not opposed to pushing back a confirmation vote until January. But if a plan isn't confirmed by Jan. 7, the trustee believes the case should be converted to Chapter 7 liquidation.

In filings Tuesday and in court Wednesday, attorneys for FirstCapital Bank and Vista Bank argued against any delay. Both banks claim Reagor-Dykes has no hope of reorganizing.

In Tuesday's filing, FirstCapital's attorneys wrote the Auto Group has only offered "hopes and dreams" of what could happen. The filing even suggests someone else has already purchased, or is working to purchase, dealership locations the reorganization plan hopes to use to operate.

Vista Bank calls the latest delay request the final straw. Its attorneys claim the Auto Group cannot even keep to its own schedule and the delay request shows the Auto Group does not have a viable plan.

The above information is related to several Reagor-Dykes companies bankruptcy proceedings. This is separate from Ford Credit's lawsuit in federal court against Bart Reagor and Rick Dykes, which ended with both principals owing large sums to the financial company. And it is separate from criminal proceedings, which include nine former Reagor-Dykes employees pleading guilty to federal fraud charges. 

 

DEC. 6: Reagor-Dykes attorneys answer Vista Bank's claims of extortion
DEC. 6: Reagor-Dykes asks for hearing delay, claims creditors approving reorganization
DEC. 5: New guilty plea shows intricate details of Reagor-Dykes check-kiting
DEC. 4: Vista: Reagor-Dykes attempting to 'extort' bank
DEC. 2: Bart Reagor ordered to pay nearly $1.8 million to Vista Bank
NOV. 26: Judge adds attorney fees to total payment in Ford Credit v. Bart Reagor
NOV. 7: Additional creditors object to Reagor-Dykes reorganization plan
NOV. 6: Two creditors object to Reagor-Dykes reorganization plan
NOV. 4: Eighth former Reagor-Dykes employee pleads guilty
NOV. 4: Vista Bank, FirstCapital Bank resolve lawsuit
OCT. 29: Dykes, First Bank & Trust settle
OCT. 28: Two more former Reagor-Dykes employees plead guilty
OCT. 16: Judge to rule in Vista Bank's favor against Reagor
OCT. 11: Hearing set on motion to convert Reagor-Dykes cases to Chapter 7
OCT. 10: Ford Credit takes issue with First Bank & Trust's liquidation request
OCT. 7: Now up to five: Two more former Reagor-Dykes employees plead guilty 
OCT. 4: Reagor-Dykes counsel asks to delay liquidation request
OCT. 4: First B&T: Reagor, Dykes using hearsay, speculation
OCT. 4: Judge denies Reagor's request to delay Vista Bank suit
OCT. 3: Jury orders Reagor to pay $53.7 million
OCT. 3: Vista Bank: Reagor unnecessarily delaying
OCT. 3: Judge issues gag order against Reagor, representatives
OCT. 2: Day 1: Ford Credit claims Bart Reagor owes $54 million
OCT. 1: Countersuit: Vista Bank wrongfully used Reagor's accounts
SEPT. 26: Reagor-Dykes reorganization proposal goes to a vote
SEPT. 20: More charges: Two Reagor-Dykes employees plead to bank fraud
SEPT. 12: First Bank & Trust proposes converting Reagor-Dykes bankruptcy to liquidation
SEPT. 3: Reagor-Dykes names primary investor in re-organization plan
AUG. 29: Objections remain in Reagor-Dykes' path to reorganization
AUG. 5: Trial date set in Ford Credit vs. Bart Reagor
JULY 12: International Bank of Commerce sues Ford Credit, claims damages tied to Reagor-Dykes collapse
JULY 11: Hearing on what Ford Credit claims Bart Reagor owes rescheduled
JULY 6: IBC Bank moves for summary judgment vs. Reagor, judge recuses himself
JULY 1: Reagor-Dykes files reorganization plan
JUNE 24: Bart Reagor states he had no knowledge of fraud, check kiting
JUNE 21:  Judge approves bankruptcy plan schedule for Reagor-Dykes
JUNE 19: Former Reagor-Dykes CFO pleads to federal conspiracy charge
JUNE 18: July 11 hearing set on amount Reagor owes Ford Credit
JUNE 17: Reagor: Ford Credit must show its work on how much it's owed
JUNE 3: Ford Credit: Bart Reagor owes $46 million plus interest
MAY 24: Ford Credit wins; court orders Reagor to pay
MAY 22: Progress reported in resolving Reagor-Dykes registration issues
MAY 9: Oklahoma bank sues Reagor, Dykes, offshore financial companies for $26 million
MAY 6: State of Texas sues Reagor, Dykes for more than $50,000 in sales taxes
APRIL 24: Reagor-Dykes registration issues may soon be resolved
APRIL 16: Bart, Annette Reagor deny breaching insurance corporation contracts in $2.4 million suit
APRIL 10: Progress but no agreement, just yet, on Reagor-Dykes TT&L plan
APRIL 8: Multiple objections filed to Reagor-Dykes' registration solution proposal
APRIL 2: Filing: Rick Dykes agrees to $58.7 million judgment to Ford Credit
MARCH 23: Universal Underwriters sues Reagors, claims Auto Group defaulted on contracts
MARCH 21: Vista Bank: FirstCapital Bank 'sealed the demise' of Reagor-Dykes with fraudulent agreement
MARCH 20: 700 Reagor-Dykes customers still have unresolved TT&L, trade-in
MARCH 19: Proposal could resolve many Reagor-Dykes registration, title issues
MARCH 19: Landlord: Reagor-Dykes Plainview abandoned in 'extreme disrepair'
FEB. 23: Dykes, Reagor response claims Ford Credit should have seen problems
FEB. 19: UPDATED: Reagor-Dykes mediation next week in Dallas
FEB. 15: Read order directing global mediation in Reagor-Dykes bankruptcy
FEB. 14: Judge orders Ford Credit to participate in Reagor-Dykes 'global mediation'
FEB. 11: Judge approves AmeriCredit's request for hearing on Reagor-Dykes Snyder
FEB. 8: Judge orders TT&L lists turned over to creditor, others request info
FEB. 8: GM Financial, citing 'little opportunity' for meaningful progress, requests access to relief
FEB. 8: Judge denies Reagor-Dykes request to delay summary judgment
FEB. 7: Landlord orders Reagor-Dykes out, another phone hearing next week
FEB. 7: Ford Credit objects to Reagor-Dykes' attempt at 'global mediation'
FEB. 6: First Bank & Trust opposes 'global mediation' for Reagor-Dykes
FEB. 6: Reagor-Dykes requests global mediation in bankruptcy
FEB. 6: Reagor and Dykes argue if Ford Credit was complicit in fraud, two men not responsible for $109 million+
JAN. 31: Reagor-Dykes seeks appeal of Bankruptcy Judge's order
JAN. 31: McDougal no longer involved in Reagor-Dykes re-organization effort
JAN. 28: Nearly 6 months later, hundreds of Reagor-Dykes customers still in limbo
JAN. 23: FirstCapital Bank allows Reagor-Dykes to use cash collateral
JAN. 18: Future uncertain for Reagor-Dykes Auto Group after recent ruling
JAN. 17: Judge: Ford Credit may repossess Reagor-Dykes vehicles
JAN. 9: Court approves Reagor-Dykes interim funding
JAN. 8: Reagor-Dykes, Ford Credit argue future of Auto Group in bankruptcy court
JAN. 8: Citing possible criminal investigation, former Reagor-Dykes CFO requests stay on discovery
JAN. 8: Ford Credit: Reagor, Dykes signed guaranties, should pay $112 million+ in relief
JAN. 7: Reagor-Dykes files reorganization plan
JAN. 7: 'Reagor-Dykes is not dead', Auto Group files response to Ford Credit's demands
JAN. 4: With no reorganization plan yet filed, Ford Credit seeks to take possession of Reagor-Dykes vehicles
JAN. 3: Lender asks bankruptcy court to force Reagor-Dykes legal team to produce documents

DEC. 26: UPDATE: Court allows Ford Credit lawsuit to proceed against Bart Reagor, Rick Dykes
DEC. 12: Slow progress reported on Reagor-Dykes customers' TT&L, trade-ins
NOV. 29: McDougal, Ewing and Dykes lead group to purchase Reagor-Dykes assets
NOV. 21 Former Reagor-Dykes CFO requests change of venue in lawsuit
NOV. 20: Toyota, GM file objections in Reagor-Dykes bid process
NOV. 14: State may extend titles for some Reagor-Dykes customers
NOV. 2: Five more Reagor-Dykes entities petition for bankruptcy
OCT. 29: Reagor-Dykes TT&L, trade-in issues remain unresolved; progress reported with some lenders
OCT. 29: Bart Reagor, Reagor Auto Mall claim First Bank & Trust party at fault
OCT. 29: Vista Bank asks to recoup funds in Reagor-Dykes accounts
OCT. 18: No resolution yet on Reagor-Dykes customers' unpaid TT&L, trade-in liens
OCT. 17: More lenders object to Reagor-Dykes' request for TT&L, trade-in payment
OCT. 16: U.S. Bank objects to Reagor-Dykes request for lenders to pay TT&L, trade-ins
OCT. 15: Compromise on vehicles in First Bank & Trust lawsuit v. Reagor Auto Mall
OCT. 15: Judge approves sale of Reagor-Dykes plane; Wells Fargo objects to portion of TT&L motion
OCT. 12: Ford Credit supports part of Reagor-Dykes' request for lenders to pay TT&L, trade-ins
OCT. 12: FirstCapital files counterclaim, motion to dismiss
OCT. 10: Reagor-Dykes aircraft to be sold, pending court approval
OCT. 10: Several filings in Reagor-Dykes bankruptcy case
OCT. 1: KamKad, Reagor-Dykes execute purchase agreement
SEPT. 24: FirstCapital Bank requests First Bank & Trust lawsuit against it, Reagor-Dykes, others move to federal court
SEPT. 21: Judge sets schedule, trial date in Vista Bank v FirstCapital Bank lawsuit
SEPT. 21: Former Reagor-Dykes CFO denies late payments, says Vista Bank attacked him, his family
SEPT. 20: Vista Bank sues former Reagor-Dykes CFO, claims loan default
SEPT. 19: Texas DMV: Reagor-Dykes should promptly resolve title issues
SEPT. 19: Brad, Kenneth Burgess file motion to dismiss Vista Bank lawsuit
SEPT. 18: First Capital Bank files motion to dismiss lawsuit
SEPT. 18: Court approves bid process for Reagor-Dykes Auto Group, extends use of cash collateral
SEPT. 17: Ford Credit, GM object to certain aspects of proposed Reagor-Dykes sale
SEPT. 14: Judge sets trial date in Ford Credit lawsuit vs. Reagor-Dykes
SEPT. 14: Reagor denies Ford Credit's claim vehicles sold out of trust
SEPT. 13: Dykes: Former Reagor-Dykes CFO admits he provided false info to Ford Credit
SEPT. 11: Reagor-Dykes Auto Group requests court to allow sale of company
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

Powered by Frankly
All content © Copyright 2000 - 2020 RAMAR. All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.