PLAINVIEW, TX (KCBD) - On the same afternoon attorneys for Reagor-Dykes Auto Group learned a Lubbock bankruptcy judge will allow Ford Motor Credit to repossess vehicles, attorneys also learned Gulf States Toyota can sever their agreement with the auto group’s Plainview Toyota dealership.
The ruling from Judge Robert Jones field Thursday says Gulf States, the regional Toyota distributor for Texas, can serve Reagor-Dykes Toyota of Plainview with a termination of the dealer agreement on or by January 25.
The ruling follows a December agreement Gulf States and RDAG came to after Reagor-Dykes' Chief Restructuring Officer was notified of a non-renewal notice. The ruling finalizes a “relief of automatic stay” motion filed by Gulf States in early November, shortly before Reagor-Dykes' failed Stalking Horse sale to KamKad Automotive of Dallas.
The document says Reagor-Dykes has until February 8 to challenge the non-renewal under the Texas Occupations Code.
Earlier in the day, Jones stated frustration with Reagor-Dykes, saying they had “no prospective lender to provide floorplan financing going forward,” meaning the dealership would be unable to purchase cars.