LUBBOCK, TX (KCBD) - In a surprising move from McDougal Companies, officials sent a news release saying they’re “ceasing discussions in the Reagor-Dykes Auto Group bankruptcy.”
“It was our hope that everyone could come to the table to work out an equitable long-range solution. We were prepared to raise significant investor capital to allow the restructured company to continue operations and work through its problems. We saw this as the best hope for all creditors, as well as consumers and employees,” Marc McDougal stated in the news release. “Unfortunately, we were unable to get all parties on board with a global solution. We hope the best for RDAG employees, customers still in limbo, and all those owed money, both secured and unsecured."
McDougal Companies was invited to Dearborn, Michigan by Ford Motor Credit to attend a “global settlement” meeting. Ewing Auto Group out of the Dallas area was also invited. The meeting was to discuss and possibly solve problems related to the bankruptcy of Reagor-Dykes Auto Group. McDougal never made it to Dearborn due to the weather, but negotiations continued by phone. McDougal says an agreement could not be made between McDougal Companies and Ford.
On Nov. 26, 2018, Marc McDougal received a call asking if the McDougal Companies would help try to salvage the Reagor-Dykes operations as it worked through the bankruptcy process. The hope was McDougal would agree to help raise operating capital and manage the Reagor-Dykes real estate. McDougal was told that the Ewing Auto Group, a highly respected and experienced automotive dealer from Dallas, was considering managing future automobile sales and service operations.”
Since that time, McDougal Companies executives says they have had dozens of meetings and calls with Reagor-Dykes counsel, their Chief Restructuring Officer, and with stakeholders that have money tied up in the Reagor-Dykes operation. They have also met with numerous investors who may be interested in helping put together a deal to create a new ownership group that can take over the operations, help consumers and save the jobs of the West Texans employed by Reagor-Dykes.
There is no word from the bankruptcy court, Reagor-Dykes Auto Group officials or from Ford on what is expected to happen next.