On Thursday, August 16, The Reagor-Dykes Auto Group met with Ford Motor Credit for the first hearing of their bankruptcy case. Reagor-Dykes filed for bankruptcy on August 1, 2018 in response to a lawsuit that was brought against them by Ford Motor Credit on July 31, 2018.

Chapter 11 bankruptcy makes many of the Reagor-Dykes entities immune to a lawsuit. However, Ford Motor Credit’s lawsuit lists at least three companies and two people; Reagor Auto Mall, Reagor Dykes II, LLC, Reagor Dykes III, LLC, and the owners themselves, Bart Reagor and Rick Dykes.

Ford Motor Credit’s lawsuit has been updated to list the total debt Reagor-Dykes owes to $113,374,000, which includes the defaulted loan debt of $40,434,000 that the company says Reagor-Dykes used to fraudulently finance multiple vehicles.

After the first bankruptcy hearing on Thursday, August 16th, a judge has ordered a Chief Restructuring Officer be hired to "...implement a plan for the sale of all assets and the transfer of all automobile dealership franchise rights..."

It’s unclear exactly how the over $113 million dollars in debt will be payed back to Ford Motor Credit. Reagor-Dykes has been given the green light to pay their employees and expenses until at least August 30, when another bankruptcy hearing will be held.

Note: This story’s headline and content was edited for clarification.

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