U.S. government objects to letting Reagor Dykes continue in bankruptcy – KLBK | KAMC | EverythingLubbock.com

LUBBOCK, Texas The United States Trustee asked a judge to basically toss out the Reagor Dykes reorganization plan and convert its bankruptcy case from Chapter 11 (reorganization) to Chapter 7 (liquidation).

The trustee suggested January 7 be the cutoff date for Reagor Dykes to get a plan approved or else stop reorganization.

The office of trustee listed out the net losses of seven Reagor Dykes companies that field for bankruptcy in August 2018.

a) Reagor-Dykes, LP: net loss of $3,190,437.00b) Reagor-Dykes Snyder: net loss of $717,602.00c) Reagor-Dykes Floydada, LP: net loss of $2,001,799.00d) Reagor-Dykes Auto Company, LP: net loss of $2,790,368.00e) Reagor-Dykes Auto Mall, LLC: net loss of $2,676,907.00f) Reagor Dykes Imports, LP: net loss of $2,346,225.00g) Reagor Dykes Amarillo, LP: net loss of $2,001,291.00

On Tuesday the trustee wrote in court records, the Debtors have been in bankruptcy collectively for 496 days and have been unable to confirm a plan.

The United States Trustee Program is a division of the U.S. Department of Justice to oversee bankruptcy cases.

Reagor Dykes filed for bankruptcy after Ford Motor Credit Company made allegations of fraud and default. Local banks also made allegations of fraud. So far, nine former Reagor Dykes employees pleaded guilty to federal charges.

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U.S. government objects to letting Reagor Dykes continue in bankruptcy - KLBK | KAMC | EverythingLubbock.com