Ford Motor Credit Company on Monday responded to Reagor Dykes in an ongoing bankruptcy case. Ford accused RD of slander and “grasping at straws.”
A few hours earlier, RD filed records in bankruptcy court implying that a Ford employee, Gary Byrd, participated in RD’s demise.
In part, RD said Monday, “Mr. Byrd’s son worked for Reagor-Dykes without the ownership group’s knowledge.”
Ford responded Monday afternoon, “But Gary Byrd does not have a son, let alone one that worked at the Dealerships.”
Ford said:
“[Reagor Dykes companies] make completely false and salacious statements to slander Gary Byrd reputation and attempt to tie him to Debtors’ fraud. This is further evidence that Debtors will stop at nothing, including making misrepresentations about a Ford Credit employee’s family to buy more time. Debtors are grasping at straws and continuing a pattern of intimidation of Ford Credit’s employees.”
Ford said RD companies “are not to be believed (or trusted) with respect to the representations that it makes to the Court.”
“This desperate and slanderous conduct should not be rewarded or condoned by the Court,” Ford said.
This most recent back-and-forth started on Friday when Ford filed a motion in bankruptcy court that, if approved, would for all practical purposes shut down RD. A court hearing is scheduled for Tuesday (January 8). Look for updates on EverythingLubbock.com.
Also on Monday, RD filed a Chapter 11 plan. CLICK HERE to read the plan.
The plan would provide 100 percent recovery to secured creditors, including Ford. Unsecured creditors would have an “unknown” percentage of recovery. An outline of the plan was released in court records on Friday.
The McDougal Ewing Dykes group would put up $20 million of equity. The plan includes participation by Rick Dykes and Ford has said there’s a problem with that.
Bart Reagor would not directly participate but would step aside.
“[The] Plan is conditioned upon legally impermissible third-party releases of Bart Reagor and Rick Dykes by all creditors and Debtors,” Ford said. In other words, Mr. Reagor and Mr. Dykes would not be held personally responsible for the debt under the terms of the plan. Ford has a problem with that.
CLICK HERE to read the most recent document from Ford.
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