LUBBOCK, Texas (KCBD) - A federal bankruptcy court approved a Reagor-Dykes disclosure statement on Tuesday, laying out a timeline for creditors to file objections and vote on the proposed reorganization.
Now that the disclosure statement has been approved, creditors can vote on the reorganization plan submitted on Sept. 3, 2019.
Ballots will be sent to creditors by Sept. 30 and should be returned to the court by Nov. 22. Nov. 6 is the last day for written objections.
The hearing for confirmation of the plan has been scheduled for Dec. 11, 2019.
Under this reorganization plan, up to $14 million in new equity would be put into the auto group's dealerships from an investment group headed by the Henry Resources, LLC oil and gas company.
This dealership would operate under a new name, established in the previous locations in cooperation with Rick Dykes and IBC Bank.
The dealership would establish new franchise agreements with Ford Motors, General Motors, Toyota, and Mitsubishi.
A new team of directors and officers would consult with the Fin Ewing group to achieve “long-term business and financial goals;”
The plan includes detailed provisions for paying back creditors.
If this proposal for Chapter 11 reorganization is not approved, this case will change to a Chapter 7 liquidation plan.