Reagor-Dykes: We’ll Be Open for Business on Monday
Days after filing for Chapter 11 and being sued by Ford Motor Company for falsifying records to obtain extra loans and defaulting on financing agreements, Lubbock-based Reagor-Dykes Auto Group announced it was cleared to pay employees and would re-open Monday, August 6th.
Everything Lubbock reported Friday that Reagor-Dykes asked a judge for permission to pay "employees, rent, utilities and other such immediate expenses for 30 days." Earlier in the day, it was unclear if employees would be paid for the previous two weeks.
Reagor-Dykes Auto Group filed for Chapter 11 bankruptcy protection earlier this week after Ford Motor Company filed a lawsuit against them in the federal court in the Northern District of Texas.
Despite filing an objection to Reagor-Dykes' bankruptcy filing, the attorney for Ford said the company had no objection objection to Reagor-Dykes using outside money to pay its employees. Additionally, vehicles lended to Texas Tech coaches as part of an agreement with the university, as well as those lended to employees, would be returned.
In a statement following the bankruptcy court's ruling that the dealer can pay its employees, Reagor-Dykes said they'd be open for business Monday:
Reagor-Dykes Auto Group was very pleased that it was able to reach an interim agreement with Ford Motor Credit to allow us to pay our employees and their associated benefits this afternoon. There is no question that the past seven days have been difficult for the Reagor-Dykes Auto Group family, but we are determined to continue to work with Ford Motor Credit in selling our current inventory and providing the best possible service to our customers. Doors at all of our dealerships will open Monday for business and we look forward to meeting with you and providing the service you have come to expect. Our employees are the best in the business and our first priority. Thank you for your continued support.
Reagor-Dykes Auto Group will return to bankruptcy court on August 16th, 2018.
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