LUBBOCK, TX (KCBD) - Citing the need for more time to review Reagor-Dykes' 60-page reorganization plan, Judge Robert Jones delayed his decision on the matter Tuesday following five hours of testimony.
Late Tuesday afternoon, the court announced Jones will make his decision on Wednesday afternoon at 2 p.m.
The plan was submitted to the court on Monday after Ford Motor Credit requested the release of their “depreciating assets” involving vehicles that have remained on Reagor-Dykes lots since the auto group’s Aug. 1 bankruptcy announcement.
Ford had hoped the court would allow them to force liquidation of the vehicles and other Reagor-Dykes assets, while attorneys for Reagor-Dykes were wanting Ford to agree to the terms of the plan.
Based on a 7-page response to the plan late Monday afternoon from Ford attorneys, that was unlikely to happen, and didn’t during the hearing, with Ford claiming in court that the terms of the plan require them to continue offering financial accommodations to Reagor-Dykes or the new entity known as McDougal-Dykes-Ewing that has stepped up to bring the group out of bankruptcy.
RDAG attorneys responded by saying Ford Motor Credit would not be required to lend any money, and that creditors can opt out if they wish.
Ford also disagreed with a term in the plan that requests the release of Bart Reagor and Rick Dykes, claiming the proposal is not intended to protect employees and the community, but to protect the owners.
Reagor-Dykes attorneys argue liquidating the company would result in the loss of jobs and ultimately hurt the South Plains.
Late last month Ford dropped Reagor-Dykes Auto Group from their lawsuit against Reagor and Dykes, focusing their attention on the two men directly. Neither has filed for personal bankruptcy.
If Judge Jones approves the plan, it would take effect on April 1, eight months to the day after Reagor-Dykes filed for bankruptcy.