LUBBOCK, TX (KCBD) - In documents filed Monday, August 13, a United States Department of Justice Trustee has objected to Reagor-Dykes Auto Group's request to hire a Chief Restructuring Officer (CRO) to investigate the actions of the former Chief Financial Officer and anyone who may have been working with that person.
On Thursday, Reagor-Dykes Auto Group filed a motion to allow them to hire the CRO.
The documents say because of the departure of the former CFO and the current state of RDAG, the company and owners have determined it necessary to bring on the Chief Restructuring Officer firm. This person will also take on the duties of a Chief Financial Officer.
The documents Reagor-Dykes filed on Thursday say the CRO will investigate the former CFO, anyone who may have been working with that person, the owners of Reagor-Dykes and anyone related to ownership.
The US Trustee says in the documents filed today the CRO would have expanded powers which would permit him to independently investigate Reagor-Dykes' prior financial transactions and their owners and officers. The documents say these duties belong to a chapter 11 trustee or an examiner, not a CRO. They are asking the court to deny Reagor-Dykes Auto Group's application to employ a CRO.
The US Trustee states in the court filing Reagor-Dykes' motion to hire the CRO did not say who that person would report to, the CRO's fiduciary duties, or, if need be, the process by which the CRO would be removed. The motion also does not mention where the CRO's authority fits into the hierarchy of Reagor-Dykes' current management.
Below are excerpts from the filing today.