Reagor-Dykes’ Bankruptcy Case Could Be Heading to Liquidation
FirstCapital Bank is asking a judge in the Reagor-Dykes bankruptcy case to change it from Chapter 11 reorganization to Chapter 7 liquidation. FirstCapital Bank made the request Thursday, Jan. 30, saying that the reorganization plan proposed by Reagor-Dykes is “based on unrealistic promises”.
The bank also noted that The Henry Group is no longer sponsoring the plan and that while Reagor-Dykes sits in bankruptcy limbo, FirstCapital Bank stands to lose $12 million while Reagor- Dykes dealerships continue to hemorrhage money.
A court document from FirstCapital Bank estimates Reagor-Dyke’s losses in 2019 to be about $18 million. A judge will likely respond to the request for Chapter 7 during a court hearing scheduled for February 12th.