Int’l Bank of Commerce files motion to allow possible foreclosures on Reagor-Dykes properties

Int’l Bank of Commerce files motion to allow possible foreclosures on Reagor-Dykes properties

LUBBOCK, TX (KCBD) - In court documents filed late Friday afternoon, the International Bank of Commerce, the bank financing most of the Reagor Dykes real estate across five Texas counties, asked the bankruptcy court to allow it to initiate foreclosure proceedings on those properties.

An automatic stay is an automatic injunction that halts actions by creditors, with certain exceptions, to collect debts from a debtor who has declared bankruptcy.

The documents say IBC and RDAG entered into a $35 million credit facility, using property in Lubbock, Hale, Dawson, Floyd and Randall counties as collateral on the loan.

Since the filing of the bankruptcy, the monthly loan payments have not been made and RDAG is in default.

The documents state:

Since there has been a payment default, inter alia, under the IBC Facility, IBC has the right to foreclose on the (RDAG) locations through judicial proceedings, non-judicial sales, under its Deeds of Trust ("Foreclosures").

A response to the motion is expected before September 14, 2018.

WHEREFORE, IBC respectfully requests that this Court (a) enter its order (i) determining that the automatic stay in these cases does not prevent the Foreclosures, or (ii) modifying the automatic stay of Section 362(a) to permit the Foreclosures to be commenced and prosecuted to completion; and (b) direct such other and further relief as is fair and equitable under the circumstances.

Also filed on Friday afternoon is a motion for an expedited hearing to lift the automatic stay. IBC requests the hearing on the IBC Stay Relief Motion be set for September 18, "so that it can be heard in conjunction with the final hearing on (RDAG's) joint emergency motion for authority to use cash collateral.

IBC filed its response to the cash collateral motion on August 29 opposing Reagor-Dykes' use of cash collateral without all future cash collateral budgets and future orders of the Court authorizing the use of cash collateral providing for and requiring timely Rent Payments by Reagor-Dykes. IBC appeared through the undersigned counsel at the August 30, 2018 hearing on the Cash Collateral Motion and argued the IBC Response before the Court.

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