FLOYDADA, TX (KCBD) - General Motors LLC filed a motion on Thursday to allow the company to terminate its franchise with Reagor-Dykes Floydada Chevrolet. The judge has granted the motion.
Because of the ongoing case with Ford Motor Credit and the Chapter 11 Bankruptcy case, General Motors asked the bankruptcy judge to allow it to terminate shipments of new vehicles to Reagor-Dykes Floydada, freeze accounts for the dealership and send a notice of termination to them.
In the court documents, General Motors (GM) is "concerned that given serious allegations that sales out of trust have occurred, and that Reagor-Dykes Floydada is unable to reconcile its obligations, GM requests that it be permitted to freeze payments of dealer hold back funds until there can be a full accounting between the parties. Moreover, as permitted by the Dealer Agreement and Texas law, GM has sent the notice of termination of franchise subject to the requirements of Tex. Occ. Code § 2301.453, and requests that it be permitted to proceed with the termination process."
GM reported Reagor-Dykes Floydada is in a breach of its agreement requirements.
"(Reagor-Dykes) Floydada, by breaching its agreements with GM has created cause to terminate their ability to operate the dealership in Floydada, Texas. GM asserts that it is imperative that GM be permitted to take action to protect its interest by:
- Terminate shipments of new vehicles to Debtor Floydada;
- Freezing accounts of the Debtor Floydada related to dealer holdbacks and other accounts; and
- Send a notice of termination to Dealer Floydada providing notice of the termination of the dealership franchise, as provide in Tex. Occ. Code § 2301.453.