Lubbock attorney considers options for Reagor-Dykes bankruptcy

Lubbock attorney considers options for Reagor-Dykes bankruptcy

LUBBOCK, TX (KCBD) - After accusing Reagor-Dykes dealerships of selling Ford vehicles without remitting required payments to Ford Motor Credit, the two will have their day in court on Aug. 8.

As listed in court documents for the lawsuit: "Ford Credit has made repeated efforts to resolve this matter with the dealerships, short of applying the order requested, but those efforts have failed."

In response to the lawsuit, Reagor-Dykes has filed for Chapter 11 bankruptcy protection at multiple locations.

"Given the seriousness of the allegations that are issued by Ford Motor Credit in its federal lawsuit, I would expect that either Ford Motor Credit or perhaps the US Trustees Office themselves may file a motion to appoint a bankruptcy trustee to take over the operations of these three bankrupt businesses and not let them stay in the hands of the debtors in possession," said Fernando Bustos, a local attorney not involved in this case.

Now, a question many people in the South Plains are probably asking themselves: will this lawsuit have any effect on someone leasing or having bought a Ford vehicle from Reagor Dykes?

"It probably will not affect every day consumers who are leasing cars and buying cars, but it certainly will have a chilling effect on people's desires to do business with those dealerships," Bustos said.

The lawsuit is expected to have a major impact on the city of Lubbock, particularly downtown.

"It's like a nuclear bomb impact on Lubbock," Bustos said. "Reagor Dykes have been really big corporate citizens for Lubbock. They've done a great job, quite frankly, in helping to revitalize downtown so it would really be a bit of a blow to the local economy if Ford Motor Credit is completely successful in their lawsuit. The businesses' assets would probably get sold to other people and it wouldn't quite have the same kind of single-minded enterprise that they've had over these last several years as they've grown and given back to the community. It's going to be a case worth watching."

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