MIDLAND -- The Ford Motor Credit Company filed court documents on Monday stating that car dealership owners Bart Reagor and Rick Dykes owe more than $100 million.
Ford Motor Credit claim in their lawsuit that Reagor and Dykes are responsible for fraud, which Ford claims happened on their watch.
Lawsuit documents state that Reagor and Dykes signed “absolute and unconditional” guarantees to pay for all present and future obligations, taking responsibility for debt resulting from the dealerships transactions.
According to KLBK, our CBS affiliate in Lubbock, this is just another step in a saga that started last spring.
On July 31st, Ford filed a lawsuit against the Reagor Dykes companies for fraud and default.
In August, CBS7 reported that the companies filed for Chapter 11 bankruptcy, a day after Ford Motor Credit sued Reagor Dykes in federal court.
KLBK reports that following the lawsuit, the company worked with the bankruptcy court to figure out employee pay and landlord pay, investigated wrong-doing, and discussed selling the dealerships. Meanwhile, Ford defended claims made in court, and made more allegations against the company.
In September, Rick Dykes responded to the civil suit, claiming his company’s former chief financial officer lied about the dealerships’ finances to the owners and Ford Credit, according to KLBK. And the lawsuit was then set for trial in 2020.
In court statements, Reagor and Dykes claimed Ford may have contributed to their filing bankruptcy.
On Wednesday, Reagor-Dykes requested mediation between all parties, according to KLBK.
CBS7 Article: https://www.cbs7.com/content/news/Reagor-Dykes-Auto-Group-files-for-Chapter-11-Bankruptcy-following-lawsuit-489884701.html
KLBK Article: https://www.everythinglubbock.com/news/local-news/reagor-dykes-wants-court-to-force-ford-and-others-into-mediation/1759701049