LUBBOCK, TX (KCBD) - Attorneys with Reagor-Dykes Auto Group have filed an emergency motion to compel global mediation involving the McDougal Group. This means they’re asking the judge to order mediation among Reagor-Dykes Auto Group, Ford Credit, Ford Motor Credit, 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.
The motion says, “Many of these pieces are interconnected, important to a chapter 11 restructuring, and relevant to resolve disputes regarding unpaid administrative expenses (including rent), requests for § 506(c) relief, issues related to the “trapped funds” held at the Debtors’ depository banks, and issues related to the chapter 11 plan brought or to be brought before the Court to move these cases toward a bankruptcy exit. There is no bona fide argument that mediation and resultant global settlement are not the best outcome for these cases and the parties involved, including the consumers affected by the unpaid trade liens and taxes, title, and license fees.”
Reagor-Dykes believes that mediation gives these cases and the parties their best shot at a business solution that preserves/maximizes the remaining value of the bankruptcy estates.
“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,” the motion states.
The motion also says the McDougal Group has agreed to participate in the mediation. McDougal says he will agree to participate if certain conditions are met. It is unknown what these conditions are, however, as of Wednesday afternoon, those conditions have not yet been met. This comes a week after Marc McDougal released a statement saying McDougal Companies is out of the restructuring plans.
The mediation is requested to be on Feb. 20, 2019, a date already reserved for hearings in these cases.
Tomorrow at 2:30 p.m. there is a telephonic hearing scheduled in which Reagor-Dykes Auto Group will argue its motion for mediation.