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Ford Motor Credit Suing Reagor-Dykes Dealerships: West Texas Dealerships File for Bankruptcy

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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.

Ford Motor Credit Suing Reagor-Dykes Dealerships: West Texas Dealerships File for Bankruptcy

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.”

Ford Motor Credit Suing Reagor-Dykes Dealerships: West Texas Dealerships File for Bankruptcy

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.

Ford Motor Credit Suing Reagor-Dykes Dealerships: West Texas Dealerships File for Bankruptcy
Photo: Facebook/Reagor-Dykes Auto Group

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