Vista Bank Responds to Reagor-Dykes CRO Allegations
On Monday (Dec. 3), Vista Bank filed a response to allegations made by the Chief Restructuring Officer of Reagor-Dykes.
KAMC News reports after several Reagor-Dykes companies filed for bankruptcy on August 1, a CRO was placed under the control of those companies.
Reagor-Dykes bounced checks on local banks at that time, one of them, Vista Bank. In late October, Vista Bank asked the bankruptcy court for permission to keep deposits to reduce the amount of overdraft. In response, the CRO filed a court document accusing Vista Bank of depositing money into Reagor-Dykes accounts in violation of the court.
Vista Bank responded to the allegations on Monday saying the funds deposited in the Reagor-Dykes accounts were already earmarked for Vista Bank, even before the bankruptcy. If Vista is allowed to keep the deposits, it would reduce overdrafts by around $1 million.
A bankruptcy judge has not ruled on the matter at this time.