According to reports, Reagor-Dykes dealerships, together with Bart Reagor and Rick Dykes, are being sued by Ford Motor Credit Company. Federal court documents filed on July 31, 2018, claim that the dealerships owe more than $41 million and have an outstanding balance of over $116 million.
They also allege that the dealerships have sold Ford Credit vehicles without issuing payments to Ford Credit, that they’ve submitted mistaken or false information to Ford Credit, and are in default of their agreements for financing and security with Ford Credit. Coupled with not surrendering vehicles in their possession subject to Ford Credit’s security interests and not settling their debts, this has led to the filing of court paperwork.
Photo: Facebook/Reagor-Dykes Auto Group
In the meantime, Ford is after a temporary restraining order to keep Reagor-Dykes dealerships from further depleting any collateral and proceeds. KCBD-NBC reported that the court document notes, “The continued deterioration of Reagor-Dykes Dealerships’ financial position, and their inability to cure defaults are believed to exceed $40 million, leaves Ford Credit with no choice but to seek the requested order in order to recover its collateral and otherwise protect its rights as a secured creditor.”
Photo: Facebook/Reagor-Dykes Auto Group
While making attempts to discuss the results of a recent audit and secure the return of vehicles, a Regional Manager for Ford Motor Credit alleged that Bart Reagor made a violent threat over the phone, which was reported to Ford Management. Subsequently, a security team was sent to meet with both Reagor and Dykes. The Ford Motor Credit Regional Manager also claimed to the court that managers from two dealerships said they had no intentions of cooperating with either the monitoring of their incoming mail or of their inventory controls. While the pair has been noted by Ford as offering to comply on some issues but not on others, Ford Credit said that an EFT (electronic funds transfer) to settle outstanding debt was returned due to insufficient funds or as a result of stop payments issued by the dealerships.
Photo: Facebook/Reagor-Dykes Auto Group
Effective August 1, Reagor-Dykes dealerships filed for bankruptcy over numerous locations in the Texas South Plains, Lubbock, and Amarillo. Bart Reagor and Rick Dykes issued a stated yesterday, saying, “The Reagor Dykes Auto Group regrets that it became necessary this morning to seek legal protection for several of its dealerships due to a dispute with one of its lenders. We are doing everything in our power to work through the issues. We are eternally grateful for our loyal employees, customers and friends in Lubbock and the West Texas community.” In the meantime, an order to schedule a hearing for August 8 at 10 a.m. has also been filed.
