LUBBOCK, Texas (KCBD) - As the calendar inches closer to the one year mark since the Reagor-Dykes Auto Group’s bankruptcy, a bank that backed the group for millions of dollars is suing the company they say started the chain reaction of events.
On Friday, the International Bank of Commerce filed a lawsuit in Lubbock’s federal court against Ford Motor Credit for not notifying IBC and other investors of Reagor-Dykes that they were terminating funding of RDAG’s Ford dealerships for their alleged ‘Floor Plan’ fraud.
IBC contends people at Reagor-Dykes, namely former CFO Shane Smith, and Ford Motor Credit knew of the late July ‘surprise’ audit from Ford that led to the eventual bankruptcy of the dealership. They argue had they and others been advised of the impending collapse, they could have stepped in to “implement a consensual plan to mitigate the damage.”
In court paperwork IBC disclosed from August 31, 2017 to February 2018 they had loaned and refinanced more than $30 million to Reagor-Dykes, and that they are currently owed more than $25 million.
IBC argues because Ford Motor Credit “willfully, intentionally, recklessly and/or negligently interfered” with their contract, Ford became liable for the debt when they froze Reagor-Dykes assets.
A hearing date on this case has not been scheduled. The next hearing in the Reagor-Dykes bankruptcy case is scheduled for October 7, also in federal court.