LUBBOCK, TX (KCBD) - On Jan. 17, Judge Robert Jones cleared the way for Ford Motor Credit to take back vehicles sold to Reagor-Dykes Auto Group. In a late afternoon filing on Jan. 31, officials with Reagor-Dykes Auto Group filed an appeal with the bankruptcy judge.
In the ruling, Judge Jones approved Ford’s relief request from the automatic stay motion filed eight days after Reagor-Dykes' initial bankruptcy.
In approving Ford’s request, Jones confirmed Ford Credit has the right to recuperate its vehicles because they have become “depreciating assets” and due to repeated cash collateral requests from Reagor-Dykes in the five months since the August 1 bankruptcy.
Jones took issue with the failed November stalking horse bidder sale to KamKad Automotive Group of Dallas, as well as the planned McDougal-Dykes-Ewing group, stating the reorganization must “do more than manifest unsubstantiated hopes for a successful reorganization." And that any plan should have “reasonable assurances of commercial viability.”
Reagor-Dykes elects review by the U.S. District Court because there is no bankruptcy appellate panel.
Just hours before the appeal was filed, Marc McDougal announced he was no longer involved in the reorganization plan.