Judge orders Ford Motor Credit to attend mediation with Reagor-Dykes

Bankruptcy judge orders mediation for Ford, RDAG

LUBBOCK, TX (KCBD) - A crowd of more than one dozen attorneys were in Judge Robert Jones’ courtroom Thursday to plead their cases in the ongoing Reagor-Dykes reorganization.

Attorneys for the auto group, as well as involved banks and Ford Motor Credit each took their time to speak with Judge Jones about where their parties stood.

Much of the discussion focused on what steps Ford will agree to moving forward, and what the other attorneys believe would be best for their clients and the Lubbock community. "Right now the case is kinda stuck in the mud and we need your help to get it out,” Reagor-Dykes attorney Marcus Helt told the court, saying the case was long on litigation and short on good business.

Helt asked Judge Jones to determine if the case is a full reorganization, or if Ford sees it more as a liquidation of the Reagor-Dykes assets. He said Rick Dykes has agreed to remove himself from all involvement in any plan moving forward. Helt also voiced frustration for the more than 900 consumer issues with tax, title and licenses still to be resolved, although he did agree there were extenuating circumstances like the recent government shutdown that impacted the process.

But, he asked Jones how to “break this logjam" and was hopeful mediation with Ford could be the answer.

Ford Motor Credit attorney Don Cram then spoke with Judge Jones, telling the court Ford had not received a detailed proposal until Wednesday, and that they were studying it. “We are considering the latest proposal and if my client deems it has legs we might be interested, however we oppose any mediation at this point.”

In the end, Judge Jones sided with Reagor-Dykes in demanding Ford Motor Credit come to the table, ordering them to attend and participate in mediation. “I want resolving consumer issues to be a priority in this mediation,” Jones told the court.

The time and place of the mediation is still to be determined. The next scheduled hearing will take place Wednesday, Feb. 20.

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