LUBBOCK, Texas (KCBD) - U.S. Marshals are commanded to collect the more than $49 million Bart Reagor owes Ford Motor Credit according to a Writ of Execution filed by Ford in Federal Court on Wednesday.
More than a year ago, Lubbock’s federal district court determined Bart Reagor owed Ford Motor Credit nearly $53.8 million. In November 2019, the amount was changed to $49,280,709.59, according to federal court documents, plus a post-judgment interest rate of 1.55 percent per annum from November 26, 2019 until paid.
Bart Reagor had personally guaranteed the Reagor-Dykes debts owed to Ford Motor Credit, including floor plan financing and capital loan obligations. The court had previously ruled that Reagor had breached that guaranty.
On Oct. 28, 2020, a writ of execution was issued to allow for Texas U.S. Marshals to collect the more than $49 million plus the more than $703,000 in interest. This means the collection and liquidation of any non-exempt assets will be used to pay the debt. All real and personal property can be seized. This means almost any asset owned by Reagor.
Attorneys tell KCBD that in these situations, most likely Bart Reagor will be allowed to keep his homestead and $20,000 in personal property, which are considered exempt.
The U.S. Marshals have 90 days from Oct. 28, 2020 to collect the debt from Reagor. If the judgment is not paid, there is an additional interest of $2,092.74 per day that will be owed.
Ford Motor Credit sued both Bart Reagor and Rick Dykes personally on August 17, 2018. The suit was filed due to Reagor-Dykes defaulting on debt with Ford Motor Credit. They were sued individually as Reagor and Dykes were guarantors of the debt.
Rick Dykes settled in April of 2019, agreeing to pay Ford more than $58 million.
On July 31, 2018, Ford Motor Credit Company, LLC filed its original complaint against certain Reagor-Dykes Auto Group entities. On August 1, 2018, and as a result of the Ford Litigation, six Reagor-Dykes Auto Group entities filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code. On November 2, 2018, four more Reagor-Dykes Auto Group entities filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code.
MORE: REAGOR DYKES COVERAGE