Judge rules on use of Reagor-Dykes restructuring officer, paying employees

Judge rules in favor of Reagor-Dykes

LUBBOCK, TX (KCBD) - The courtroom was packed Thursday as attorneys and others gathered for the Reagor-Dykes bankruptcy hearing -- just about the only person not in attendance was Bart Reagor.

Counsel was present representing Reagor-Dykes, Ford Motor Credit, U.S. Trustee's Office, Gulf States Toyota, Universal Underwriters Service Corporation, Online Vehicle Exchange LLC, Liberty Capital Bank, FirstCapital Bank of Texas and Vista Bank.

The hearing started by Reagor-Dykes' attorney, David Langston, filing an application to hire Blackbriar Advisors, LLC to put together a schedule of assets and liabilities of all entities in the matter. Langston said the parties have been on site and turned in a budget for the companies work through Sept. 1.

However, the company has also been looking for capital and a floor plan to finance operations, he said, and have been working with Ford to provide accurate information.

Keith Langley, who is representing Ford, said the company has recognized the need for Reagor-Dykes use of Blackbriar and agree with Langston on budget issues.

"We believe it is critically important to get this information including discussions with the manufacturers," Langley said. "The debtor in possession will continue."

Ford agreed to continue the use of cash collateral, but was seeking preservation of all information available.

Tommy Swann, with Universal Underwriters, said funds Reagor-Dykes had were held by Universal Underwriters though it belonged to them. He sought wording that would be able to preserve the company's interest.

Judge Robert Jones said this hearing was to decide on continuing the use of collateral cash through the end of August with the budget Reagor-Dykes submitted. He also allowed for the hiring of a Chief Restructuring Officer through Blackbriar and set another hearing set for 9 a.m. on Aug. 30.

However, representatives with U.S. Trustees objected to the hiring of Blackbriar but Langston said it was necessary, that way Reagor-Dykes would be able to gather information and would allow the debtors in possession to stay in possession.

The motion was approved to continue the use of cash collateral with the budget, and this was agreed upon by the two major parties, Reagor-Dykes and Ford. This decision will stand as a "keep doing what we're doing" decision, Jones said.

This motion also allows Blackbriar to continue any work it has already started and Ford has confidence it will do its work on an interim basis.

Representatives with Reagor-Dykes said the restructuring officer with Blackbriar has helped create a budget to pay officer overhead, employees, dealerships and customer concerns.

The Aug. 30 hearing will also be set as the final hearing on employment of Blackbriar and all other motions, including a motion to appoint a trustee, will be heard then.

Reagor Dykes issued this statement on Thursday afternoon:

The Reagor Dykes team is thankful for today's federal court order result, We are encouraged by Ford Motor Credit's willingness to work towards a constructive solution with our (CRO) Corporate Restructuring Officer.

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