Texas
Related: About this forumBankruptcy judge gives Ford, Toyota permission to sever RDAG relationships
LUBBOCK -- Bankruptcy Court Judge Robert L. Jones granted Ford Motor Credit Co. and Gulf State Toyotas requests to stop doing business with Reagor-Dykes Auto Group.
In separate rulings, the judge authorized Gulf State Toyotas November motion to terminate the creditors relationship with Reagor-Dykes Plainview. The dealership agreement can be terminated as of Jan. 25.
Jones also ruled in favor of Ford Credit, giving it permission to repossess its vehicles. In his decision, he states the parties can still work out an agreement, but that Reagor-Dykes must cooperate with the ruling.
In Ford Credits original motion, they argued their collateral is losing value as it sits at Reagor-Dykes dealerships, and they should be allowed to seize vehicles. Reagor-Dykes countered, calling the Ford Credits motion nuclear, and stated that if confirmed, the reorganization plan proposed in court would need vehicles like those owned by Ford Credit to recapitalize the business.
Read more: https://www.lubbockonline.com/news/20190117/bankruptcy-judge-gives-ford-toyota-permission-to-sever-rdag-relationships
The judge's decision is correct. RDAG committed fraud by obtaining financing for vehicles that they never sold.
Wellstone ruled
(34,661 posts)TexasTowelie
(112,422 posts)I've been posting threads about the bankruptcy since August:
Federal judge OKs emergency motion to pay Reagor-Dykes auto group employees
Reagor-Dykes court filings further explain what happened, condemn former CFO
$5 million still outstanding in Reagor-Dykes Auto Group TT&L fees
Ford Credit won't approve proposed Reagor-Dykes Auto Group reorganization, asks to seize assets
There appear to be several hundred car owners that don't have clear titles to their vehicles. One of the principals in Reagor-Dykes is trying to reorganize so that they can continue with the fraud.
Wellstone ruled
(34,661 posts)Usually this type of fraud gets damn messy. The car buyers usually take it in the shorts.