The Reagor Dykes companies asked a judge for force mediation between the major players in its ongoing bankruptcy case. Reagor Dykes (RD) asked for an emergency hearing on Thursday and then to approve February 20 as the mediation date.
Mediation is not the same as arbitration. Theoretically, to reach a “global resolution” the various companies in the bankruptcy case would voluntarily participate. But RD wants the judge to order everyone to show up and at least try to negotiate.
The McDougal Companies on January 31 said, “We are ceasing discussions in the Reagor-Dykes Auto Group bankruptcy.” But now, the McDougal Companies are back in the mix, according to the newest court documents. “The McDougal Group has agreed to participate in the mediation.” RD said.
After this story was initially published, Marc McDougal said he would agree to participate on certain conditions, but those conditions have not yet been met.
Also, after this story was first published, a notice of hearing by telelphone was added to the court docket for Thursday at 2:30 pm.
“This case represents a complicated jigsaw puzzle with many pieces. These pieces include Ford Credit, Ford Motor Company, General Motors, GM Financial, Gulf States Toyota, Mitsubishi Corporation, International Bank of Commerce, First Capital Bank, Vista Bank, AIM Bank, and about 58 retail lenders,” RD said.
RD also said, “If the parties do not attempt this Court-ordered mediation, then the cases will continue to be filled with disputes and to-be-filed contested matters and adversary proceedings, which will not only clog this Court’s docket but eat into any recovery to creditors.”
On Wedensday evening, First Bank & Trust (FB&T) filed an objection.
“There are eleven bankruptcy cases with hundreds of creditors, all of which have differing claims against different debtors will different prospects of recovery,” FB&T said. “No mediator could meaningfully engage all the constituencies and differing claims in a mediation.”
FB&T said the request for forced mediation should be denied.
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