Reagor-Dykes submits reorganization plan ahead of July 11 hearing
LUBBOCK, Texas (KCBD) - As of July 1, Reagor-Dykes Auto Group exists basically on paper and in the memories of West Texans. On Monday crews could be seen taking the familiar ‘RD’ logo off the company’s headquarters in downtown Lubbock.
This past weekend, attorneys for Foley & Lardner, LLP, the law firm representing the dealer group, submitted their final proposal for reorganizing Reagor-Dykes out of Chapter 11 bankruptcy ahead of a July 11 hearing in federal court.
The reorganized plan does not include Bart Reagor.
According to the paperwork, the new group will have access to up to $14 Million in “new equity infusion” to pay back debts and cover attorney fees.
The reorganization will have oversight and consulting from Fin Ewing of the Ewing Auto Group based in the Dallas area.
The $14 Million will be dispersed to various creditors and banks that currently have claims against Reagor-Dykes, including Ford Motor Credit and GM Financial.
If approved, it would allow the new auto group to re-establish business with many of the RDAG dealerships.
The plan comes with a second suggestion that if reorganization would not be feasible, liquidation of remaining RDAG assets would take place.
The paperwork states that restructuring would “yield the highest and best return for all creditors and parties in interest.”
See the full restructuring plan below:
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