A federal bankruptcy judge approved a multi-million dollar settlement between Vista Bank and the estate of the Reagor-Dykes Auto Group in court Wednesday. The agreement will inject $7.5 million into the estate, end all of Vista Bank's claims and demands in the bankruptcy case, and adds an approving vote to Reagor-Dykes' reorganization plan.
This follows Reagor-Dykes' serious accusations last month that Vista Bank benefited and participated in the massive fraud that led to the Auto Group's collapse.
Attorneys for the estate leveled similar accusations against another creditor, FirstCapital Bank, earlier this month. FirstCapital has indicated it will fight the adversarial proceeding, calling itself "a victim of Reagor Dykes’ massive fraudulent scheme and nothing more."
Vista Bank's attorneys sent FOX34 this statement Wednesday afternoon:
Vista Bank is pleased that the Court has approved our settlement in this matter, which definitely allows Vista to avoid the time, expense and distraction of protracted litigation while moving forward with the important work of serving our clients.