Reagor Dykes ‘is viable and worth reorganizing’ court filing says

Posted: Jan 7, 2019 / 12:20 PM CST

Updated: Jan 7, 2019 / 05:17 PM CST

Reagor Dykes on Monday responded to Ford Motor Credit saying in part “Reagor-Dykes is not dead.”

Ford filed a motion on Friday that would, for all practical purposes, shut down Reagor Dykes. A judge has not ruled, but Reagor Dykes disputes several of the claims made by Ford.

Several RD companies filed for bankruptcy on August 1. More RD companies followed suit in November. RD was accused of default and outright fraud by Ford.

While in bankruptcy, RD was placed under the control of a Chief Restructuring Officer. A plan was developed to sell the RD dealerships at auction in November. That plan fell through.

A second plan has been in the works. The McDougal-Dykes-Ewing Group plan, if approved, will recapitalize RD with $20 million. The plan includes participation by Rick Dykes, and Ford’s motion on Friday did not cast that possibility in complimentary terms.

“Reagor-Dykes is not out of money,” RD said. “Reagor-Dykes is not without a plan to restructure its debts and recapitalize its business, contrary to what is said by Ford Credit.”

RD said a formal version of the McDougal-Dykes-Ewing plan would be filed Tuesday in court. It would also include a loan from International Bank of Commerce.

RD said Ford’s motion on Friday should be denied. RD said in part:

Sadly, Ford Credit has chosen to try to take Reagor-Dykes into fire-sale liquidation, which Reagor-Dykes think helps no one, including Ford Credit itself. This forced liquidation will only make worse the damage caused by actions taken in early August 2018, which creates a fundamental question: If Ford Credit seeks to bury Reagor-Dykes, along with the hope of any recovery and resolution to claims and concerns of most – if not all – of the creditors, consumers whose taxes, title, and license fees have yet to be paid, current and future employees, landlords, future car buyers, manufacturers, and many others, including Lubbock and its surrounding communities, then why?

RD also implied that Ford’s own employees are not innocent in the demise of RD. (See update below.) It’s not the first time RD has said so in the bankruptcy process. RD said:

Thus far Reagor-Dykes has refrained from seeking (a) Ford Credit documents; (b) Ford Credit communications (including those between Shane Smith’s long-time friend, Gary Byrd, who is the Ford Credit employee who managed Reagor-Dykes’ account with Ford Credit); and (c) Ford Credit’s audit results (which regularly praised the Reagor-Dykes and its operational performance). Reagor-Dykes has also not sought Mr. Byrd’s private communications with Shane Smith; nor have the Debtors attempted to understand why Mr. Byrd’s son worked for Reagor-Dykes without the ownership group’s knowledge and how much was earned by this relationship.

Another court hearing is scheduled for Tuesday. EverythingLubbock.com will provide updates.

CLICK HERE to read the latest filing by Reagor Dykes

UPDATE: On Monday afternoon Ford filed a document taking issue with allegations against Gary Byrd. Ford said, “Gary Byrd does not have a son, let alone one that worked at the Dealerships.”

Ford also said. “Now [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.”