Ford Asks Bankruptcy Court to Remove Protections from Reagor-Dykes
Ford Motor Credit has filed a request to remove bankruptcy protections from what’s left of the Reagor-Dykes dealerships.
KAMC News reports that Ford filed a document in bankruptcy court on Friday (Jan. 4) that said a reorganization plan was promised, but hasn’t been provided. Reagor-Dykes companies filed for bankruptcy on August 1, with others doing so in November.
Since then, Reagor-Dykes has used Ford’s money and vehicles to stay in business under Chapter 11 bankruptcy.
Ford says that without their money and inventory, Reagor-Dykes cannot continue operations.
For a period of time, it appeared that the dealerships were to be sold at auction to KamKad Automotive Group, but the deal fell through.
Ford asked the bankruptcy court to remove protections for Reagor-Dykes as of January 5 so that they can proceed with remedies.
Reagor-Dykes is accused of defaulting on around $40 million of debt. The total amount of debt to Ford is roughly $112.