Amended Reorganization Plan for Reagor-Dykes Filed
The Reagor-Dykes companies have filed an amended reorganization plan in bankruptcy court.
The plan makes it clear that if reorganization plans fail then the next option is to liquidate what's left of Reagor-Dykes.
The proposal says that the Reagor-Dykes dealerships or locations will be operated on the same real estate where they were operated prior to and during the bankruptcy case. The dealerships will also be recapitalized by the Plan Sponsor or its designee.
The plan sponsor has yet to be fully disclosed but the Fin Ewing Group will be providing consulting services.
The plan sponsors will own 90% of the reorganized company and 10% of the reorganized company will be owned by a creditors trust.
According to KAMC News, reorganized debtors will received up to $14 million in cash and financing from the plan sponsor to be used for working capital and to pay allowed claims.
Ford will get $2 million plus a $5 million promissory note for its unsecured debt.
GM will get $1.5 million for its unsecured debt.