Reagor-Dykes Mitsubishi asked to move out or pay $55k per month rent due

Reagor-Dykes Mitsubishi asked to move out or pay $55k per month rent due

LUBBOCK, TX (KCBD) - According to documents filed Thursday morning, Reagor-Dykes Auto Group has not paid rent for August in the amount of $55,000 for the Mitsubishi location on 82nd Street near Milwaukee Ave.

The documents filed by Eighty Second Street Investments, LLC and Lubbock Windmill Real Estate, LLC are telling Reagor-Dykes Auto Group to either pay their rent or move out of the property. Sources say July's rent was paid in full.

Reagor-Dykes Auto Group (RDAG) had signed a 180 month lease that began in September 2012 and would end September 2029

On August 1, RDAG filed for chapter 11 bankruptcy. On August 2, they filed a voluntary petition for relief.

The documents filed Thursday say Eighty Second Street and Windmill did not receive their rent payment for the Mitsubishi location. Shortly after the bankruptcy was filed, RDAG officials told the "landlords" the August 2018 rent would be paid and the checks were in the mail.

RDAG officials also told the landlords the August rent and the subsequent months would be authorized and paid out of cash collateral. However, the documents say the use of cash collateral approved by the bankruptcy judge did not include the payment of rent due to Eighty Second Street and Windmill.

Eighty Second Street and Windmill state in the documents that if RDAG doesn't pay up immediately, they need the occupants to leave so they can re-lease the property.

The documents filed today also say Eighty Second Street and Windmill have not been furnished proof of casualty insurance, which was a requirement of the lease.

A hearing for this matter has been set for September 19, 2018.

Also filed Thursday morning, the landlords of the Plainview Reagor-Dykes location, Plainview Ford-Lincoln, have asked the bankruptcy judge to allow RDAG to use cash collateral to pay the rent owed.

The landlords of the Plainview location say in the documents the rent is $6,500 per month and that is what is due. The documents say no rent has been paid to the Plainview landlord since the order for relief in this case. The landlord states they reserve the right to reject the lease

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