Attorney General weighs in on Reagor Dykes case

Attorney General weighs in on Reagor Dykes case
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LUBBOCK, Texas (KCBD) - On the eve of a court hearing that may decide whether the Reagor Dykes estates stay in reorganization or are liquidated, new filings in the RDAG bankruptcy case by the Texas Attorney General reveal that Reagor Dykes has “resolved approximately 90 percent of the initial consumer issues” but about 100 consumers still do not have titles to their vehicles.

In its filing opposing the motion to convert the bankruptcy from a reorganization to a chapter 7 liquidation, the Texas Attorney General asks the bankruptcy court to deny the motion to convert the bankruptcy to a liquidation.

“As the Court is aware,” the filing states, “the bankruptcy code charges a chapter 7 (liquidation) trustee with certain limited statutory duties. But none of those duties charge the trustee with advocating for harmed consumers.”

The filing states counsel for debtors and counsel for Rick Dykes are “putting the final touches to a settlement that should resolve the balance of the remaining consumer issues.” It calls “new money” contributed by Rick Dykes to fund a Consumer Ombudsman the “keystone” of the agreement. The Ombudsman would be a “fiduciary working on behalf of the consumers.”

The filing does not contain complete details of the agreement but promises “more details at the hearing.”

The hearing takes place in the U.S. Bankruptcy Court on Wednesday at 9 a.m.

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