LUBBOCK, TX (KCBD) - Attorneys for Reagor Dykes' Chief Restructuring Officer say they are making progress on resolving a multi-million dollar issue of outstanding titles and trade-in amounts, but admit they are not moving at the speed many of the lenders would prefer.
In a Wednesday hearing in Lubbock’s federal bankruptcy court, Ashley Ellis, an attorney with Foley & Lardner LLC. of Dallas, spoke by phone with Judge Robert Jones.
Ellis told the court as of December 12 Reagor Dykes Auto Group had resolved 377 title concerns, but more than 700 cases remain. Ellis also said they were able to resolve more than 30 trade-in cases, but still had nearly 200 cars to process.
All told, Ellis said Reagor Dykes has an outstanding balance of $5.4 million remaining in title and trade-in costs. “Are we making progress? Yes," Ellis said before adding the CRO understands the banks, credit unions and finance organizations that are awaiting those trade offs and titles are growing frustrated.
Ellis said part of the proposed rescue of Reagor Dykes assets by the McDougal/Dykes/Ewing group would include the new group reimbursing the lenders their money in a five-year loan at a five percent interest rate.
So far, Ellis said, roughly half of the lenders have agreed in some form to the plan.
Roger Key, an attorney representing Lubbock National Bank, addressed the court saying LNB had “tried to be as patient as we can. In four and a half months we should have got some information.” Key and other attorneys say they were promised a list of titles and locations of the vehicles during last month’s hearing. “We’re not asking for resolution, we just want to know who has what title.”
Ellis said the CRO is trying to clear the titles, but that due to constraints put in place they have been unable to work faster. “We simply don’t have enough bodies to throw at the problem.”
Judge Jones asked what progress had been made on the Texas Attorney General’s office being involved in the process. Ellis and other attorneys said they were still waiting to hear. “It concerns me we can’t accommodate them (consumers) in some fashion,” said Jones.
The judge did agree getting extended temporary tags for drivers was a small step. “I would feel better if we can get relief for consumers.”
Ellis said a plan was in place, but told the judge "it will take a while.”
Judge Jones thanked all of the attorneys involved before admitting no resolution would come on Wednesday.
A number of other items set to take place in Wednesday’s meeting were moved to hearings on Jan. 8 and Jan. 23.