LUBBOCK, Texas (KCBD) - Bart Reagor will have to join his former business partner Rick Dykes in paying Ford Motor Credit millions of dollars as the co-guarantor of the Reagor-Dykes Auto Group.
Judge Sam Cummings denied an objection to his earlier ruling that said Reagor and Dykes must repay more than $110 million in loans and interest to Ford Motor Credit.
Attorneys for Rick Dykes agreed to settle his portion of repayment in April for $58,712,000.
As owners of the auto group, Reagor and Dykes agreed to back loans their dealerships used to purchase vehicles, many of them from Ford Motor Credit.
Attorneys for Reagor claim that the actions of former CFO Shane Smith were done in the name of Reagor and Dykes without their knowledge, and that Ford Motor Credit “knew or should have known” that the dealership was accruing that much debt, therefore Reagor was not responsible to repay the loans.
Judge Cummings’ order issued Friday states he overruled the objection because contract terms entered in between Ford and Reagor “are clear and unambiguious,” and states that there have been multiple defaults on the loans.
Because Dykes has agreed to pay his portion of the money, Cummings said Ford could submit an amended proposed judgement for repayment by June 3. Cummings also allowed Reagor’s attorneys 14 days after the amended proposal to submit an additional objection.
READ - Friday’s filing: