Bankruptcy estate of Reagor-Dykes claims new plan is ready to pa - FOX34 Lubbock

Bankruptcy estate of Reagor-Dykes claims new plan is ready to pay off creditors

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LUBBOCK, Texas -

The bankruptcy estate of the Reagor Dykes Auto Group claims a new plan is ready to pay off creditors. 

Attorneys say they received support from all but one former creditor. They've cut deals with Ford Credit, GM Financial and several banks. According the the estate, US Bank plans to take a stand in court. 

Under the new plan, a "creditor's trust" will dismantle and sell off what remains of the dealerships. The team will also keep filing lawsuits as it deems necessary to recover more money for the creditors. 

In exchange for an approval vote, GM will hand off its lawsuit against AIM Bank and only take $3 million if the estate wins. The rest will go toward paying off other creditors. FirstBank & Trust and Vista Bank won't get anymore money after reaching a settlement. 

Attorneys have also added a new clause, barring any creditor from ever suing the auto group's estate again if the plan is approved. That would not block any further criminal charges. 

The plan also references an agreement from February releasing co-owner Rick Dykes from any liability and preventing anyone from going after him. That agreement includes Dykes putting up the money to resolve consumer's tax, title and license problems, and giving up his claim to nearly $2 million he loaned to the estate since January 2019.

Bart Reagor is still listed as a beneficiary, getting a share of the liquidation money after the other creditors have been paid off in full. 

The confirmation hearing for the liquidation plan is set for Wednesday morning. 

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