LUBBOCK, TX (KCBD) - Reagor Dykes Auto Group, Lubbock County, the Texas Comptroller and the Texas Department of Motor Vehicles have filed a notice that they have agreed to a resolution for the 656 remaining consumer title issues involving tax, title and license fees in Texas. Reagor-Dykes Auto Group is expected to file the motion to the U.S. Bankruptcy Court by the end of this week. The motion still needs the court’s approval.
The notice states: Under the Agreement, without opposition from the Texas Department of Motor Vehicles, Lubbock County Tax Assessor’s office may handle all vehicle registration/title transfers for Texas consumers who wish to use the Lubbock County Tax Assessor’s office and waive the payment of unpaid sales-tax amounts due as a pre-condition for Texas consumers to the registration/title transfer of purchased vehicles. Lubbock County Tax Assessor will assert such unpaid sales-tax amounts as a priority unsecured claim against the bankruptcy estates.
This Agreement removes a significant monetary impediment to the vehicle-registration / title transfer process that has plagued the Debtors since the filing of the bankruptcy cases. The Debtors have a team devoted to the implementation of this Agreement and will continue to work, given available cash resources, with the Lubbock County Tax Assessor’s office (and others) to register all vehicles as expeditiously as possible. The Debtors will continue to seek advance payment of all fees associated with these vehicle registrations / title transfers from the retail lenders as a pre-condition to such vehicle registration or title transfer.
This Agreement is an important step in solving this difficult consumer “TT&L” problem for affected consumers. Another step will be approval of this Agreement by the Bankruptcy Court. This Agreement will be attached to a motion to approve compromise and settlement under Bankruptcy Rule 9019, which such motion is expected to be filed with the Bankruptcy Court by the end of this week.
RDAG has approximately 100 titles, of the 656, ready to transfer upon the Court’s approval. RDAG will begin the process of securing title documents for the remainder of the transactions upon the Court’s approval of the motion.