Andrew R. Seger replies to allegations of attempted extortion made by Vista Bank

by: Staff | newsweb@everythinglubbock.com

Posted: Dec 6, 2019 / 09:10 AM CST

Updated: Dec 6, 2019 / 09:34 AM CST

LUBBOCK, Texas — After-hours on Thursday, Andrew R. Seger responded to allegations of attempted extortion that Vista Bank’s attorney Fernando Bustos made in a press release on Wednesday evening.

Vista also filed legal action Wednesday in federal court against Reagor Dykes and its Chief Restructuring Officer (CRO).

Among other things, the statement from Vista said “[The] CRO attempted to extort money from creditors, including Vista Bank, to pay for over $5,000,000 in unpaid administrative expenses…”

Seger said he does not work for Reagor Dykes but instead was hired by the bankruptcy estate. If the estate can make claims and recover money from others, then Seger’s job is to investigate the claims and make that happen.

Seger said the statement from Vista was misleading and “unseemly.”

EverythingLubbock.com has also reached out to an attorney who represents the CRO to offer comment.

Underlying all these recent developments is the bankruptcy of Reagor Dykes. The bankruptcy was filed in August 2018 after Ford Motor Company accused Reagor Dykes of fraud and default. To date, nine Reagor Dykes employees have pleaded guilty to various federal charges. The bankruptcy case continued as of Friday morning.

The following is Seger’s full statement:

Both my firm in conjunction with another firm have been retained as Special Litigation Counsel to the Reagor-Dykes Bankruptcy Estates and act under the supervision of its Chief Restructuring Officer. Our employment was approved by the Bankruptcy Court and without a single objection from Vista Bank or any other creditor. We do not work for Mr. Reagor or Mr. Dykes. Instead our sole job is to investigate and pursue claims against third parties that the Bankruptcy Estates may have, including against those parties who may have been involved in alleged wrongdoing.

Per the United States Bankruptcy Code, any recovery in pursuing these claims will be used to help repay the legitimate creditors of the Bankruptcy Estates. Our role as Special Litigation Counsel is to help heal the wounds inflicted on this community by maximizing monetary recovery to the Estates’ legitimate creditors.

On December 4, 2019, at the request of Vista Bank, the parties held a mediation in Dallas, Texas. Prior to the mediation, and also at the special request and insistence of Vista Bank, the Chief Restructuring Officer sent a demand letter setting forth the nature and extent of the alleged claims of the Estates. The mediation did not end successfully. Within minutes of the termination of the mediation, Vista Bank caused to be released to multiple media outlets a materially inaccurate and misleading press release. It is both regrettable and unseemly that Vista Bank has decided to take otherwise confidential settlement discussions and turn them into public spectacle.

As Special Litigation Counsel, we will not try this case in the media. Any further statements regarding the Estates’ contentions and allegations against Vista Bank will be made within the context of our pleadings in the subject case.