LUBBOCK, Texas — Three objections were filed Wednesday to the Reagor Dykes second proposed plan of reorganization. Reagor Dykes filed for bankruptcy in August 2018 after the company was accused of fraud and default.
Ford Motor Credit Company objected to the proposed plan saying in part no one can be a Ford dealer without express permission from Ford.
“Ford has not yet given approval of those changes in ownership and management,” the objection said.
Ford also said the Reagor Dykes facilities need to be in good condition and other court records filed previously have indicated they are not.
“Ford requires a feasible plan and an executed agreement to renovate each facility within a specified duration to bring the facilities in line with Ford standards,” Ford said.
Gulf States Toyota also filed an objection saying no one can be a Toyota dealer without permission and that has not been done yet.
Bank of the West filed an objection saying the plan is “too vague.”
The second proposed plan was filed in September. It calls for Auto Investment Group and SLJ Company to recapitalize the various Reagor Dykes Dealerships with $13 million in exchange for 90 percent equity.
The first proposed reorganization plan fell part in late 2018.
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