LUBBOCK, TX (KCBD) - A dealership filed a motion with the Lubbock bankruptcy court on Friday, asking the court to rule on the disposition of 15 vehicles that were purchased by Reagor-Dykes dealerships now that banks are refusing to honor the drafts made for those vehicles, totaling more than half a million dollars.
Nyle Maxwell of Taylor says these vehicle transactions were being processed when Reagor-Dykes filed for bankruptcy protection. They are asking the court to lift the stay and allow them to receive payment for the vehicles or to reclaim them from customers.
Nyle Maxwell told the court, "customers having possession of the Nyle Maxwell-owned vehicles are probably unaware of the status of their respective transactions. Nyle Maxwell requests that the stay be lifted and that it be permitted to recover its vehicles, or to allow Nyle Maxwell to contact customers regarding alternate financing or turnover of the vehicles to Nyle Maxwell."
The dealership is concerned about risk of loss from the vehicles and the possibility that the vehicles may be used to generate income paid to other creditors, saying, "Any delay in recovering the subject vehicles creates additional risk of loss to Nyle Maxwell or damage to its vehicles. Additionally, the Nyle Maxwell-owned vehicles may have been included in lease agreements which have generated income that is or will be used by Debtors to pay creditors other than Nyle Maxwell, which itself must meet obligations owed to its own creditors."