LUBBOCK, TX (KCBD) - Ford Motor Credit Company LLC filed a motion Thursday morning objecting to Reagor-Dykes Auto Group’s motion to compel global mediation.
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.
According to Ford Motor Credit, over the past six months, RDAG “had ample opportunity to sell its assets or to advocate approval/confirmation of a plan and disclosure statement. This has not come to fruition.” The motion goes on to say the Reagor-Dykes Auto Group 363 sale process failed and although a plan has been filed, no steps have been taken to advance confirmation as it lacks support. “Now, without any proposals, without any agenda, and without any specific issues to be resolved, [RDAG] seeks to compel numerous parties to participate in a global mediation in less than two weeks. At this point, any mediation attempt cannot be successful as there is no agenda, opportunity to discuss, or articulated dispute to resolve. As such, the motion should be denied.”
The purpose of mediation is to resolve specific disputes between specific parties. Ford believes RDAG is taking a shotgun approach to compel more than 20 different parties to mediate any number of unnamed disputes in less than two weeks without any confirmable plan or proposal.
“If the Debtors have proposals, an agenda or seek to resolve specific disputes, they should be articulated before the Court compels parties to mediate. Without any starting point and absent structure, any compelled mediation is likely to result in a waste of resources, time and goodwill. At this point, the estate is administratively insolvent and Debtors should not be permitted to further waste its resources and the resources of creditors.”
On Wednesday, FirstBank & Trust also filed a motion objecting to the global mediation.
Reagor-Dykes Auto Group requested the mediation to be on Feb. 20, 2019, a date already reserved for hearings in these cases.
Today at 2:30 p.m. there is a telephonic hearing scheduled in which Reagor-Dykes Auto Group will argue its motion for mediation.