First Bank and Trust (FB&T) made a deal with Reagor Auto Mall in court records Monday morning.
FB&T sued Reagor Dykes, FirstCapital Bank and several individuals in September. Among other things, FB&T sought sequestration (or confiscation) of vehicles that were collateral.
Some, but not all, Reagor Dykes companies filed for bankruptcy in August. The RD companies that filed for bankruptcy have protection from lawsuits, but Reagor Auto Mall is not on that list.
FB&T claims Reagor Dykes owes roughly $1.5 million in bounced checks, plus a little less than a $1 million in one loan and a little more than $2 million in another loan.
Reagor Auto Mall agreed to put up a $3 million bond, and get insurance on a list of vehicles which are held as collateral to FB&T. There are some other requirements but once Reagor Auto Mall has done what the agreement says, then it can sell or lease or take trade-ins for them.
Any money from the sale of vehicles on the list must be held in an FB&T bank account, and the agreement says that Reagor Auto Mall needs written consent from FB&T and FirstCapital.
FirstCapital also claims RD companies owe money. The agreement says, if there are further disputes, the court will step in.
The $3 million bond is no longer valid if Reagor Auto Mall joins the other RD companies in bankruptcy.
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