Gulf States Toyota objects to bid, sale of Plainview dealership
Gulf States Toyota objects in U.S. Bankruptcy Court to Reagor-Dykes' request to allow it to begin the process to sell its assets. It states the dealership agreement for the Plainview Toyota dealership will expire before a proposed sale date.
Gulf States Toyota objects in U.S. Bankruptcy Court to Reagor-Dykes' request to allow it to begin the process to sell its assets. The Reagor-Dykes Auto Group includes a Toyota dealership in Plainview.
In the objection filed Friday, Gulf States Toyota notes its dealer agreement has twice been extended by six months. The current term expires Nov. 8.
As we earlier reported, the chief restructuring officer for Reagor-Dykes filed documents asking for approval to start bidding procedures for remaining assets. This would allow KamKad Automotive Holdings to enter as a "stalking horse bidder" and allow a competitive bidding process to begin.
The request to allow bidding and sale listed sale date of Nov. 28. Gulf States Toyota argues Reagor-Dykes can't assign an agreement that has already expired. Further, even if the dealer agreement was extended, Gulf States Toyota writes it has the right to refuse a contract and sees issue with potential transfer of ownership and change of management.
The company also lists Reagor Plainview in breach of these obligations: "(i) failure to maintain the required minimum net working capital requirements; (ii) failure to maintain an adequate flooring line; (iii) failure to pay off consumer trade-in obligations; (iv) failure to maintain acceptable sales customer satisfaction performance; (v) failure to maintain minimum vehicle inventories; (vi) failure to actively and effectively advertise, merchandise, promote and sell Toyota products; (vii) failure to comply with consumer protection statutes, rules, and regulations; (viii) failure to maintain an adequate genuine Toyota parts inventory; and (ix) failure to keep dealership operations open for business during customary hours."
More objections to the potential bid and sale are listed in the document below.
FRI: Judge sets trial date in Ford Credit lawsuit vs. Reagor-Dykes
FRI: Reagor denies Ford Credit's claim vehicles sold out of trust
THU: Dykes: Former Reagor-Dykes CFO admits he provided false info to Ford Credit
TUES: Reagor-Dykes Auto Group requests court to allow sale of company
SEPT. 4: Reagor-Dykes Auto Group establishes process to resolve customer problems
AUG. 31: International Bank of Commerce asks for court to allow it to foreclose on Reagor-Dykes dealerships
AUG. 31: More Reagor-Dykes companies, co-owners may soon file for chapter 11
AUG. 30: Court extends Reagor-Dykes employment of CRO; officer discusses potential dealership buyers
AUG. 29 : International Bank of Commerce asks for loan payment in Reagor-Dykes case
AUG. 29: Ford Credit objects to Reagor-Dykes earlier legal team
AUG. 27: Vista Bank doubles relief request in new federal suit against FirstCapital Bank
AUG. 25: Reagor-Dykes chief restructuring officer hires new legal team
AUG. 25: GM proceeding with termination of Reagor-Dykes Floydada
AUG. 23: Landlords demand rent for Reagor-Dykes dealerships in Lubbock, Plainview
AUG. 20: Ford Credit moves ahead with suit against Reagor, Dykes, some R-D companies
AUG. 18: Reagor-Dykes bankruptcy case: Read court order following Aug. 16 hearing
AUG. 17: Auto dealer claims Reagor-Dykes owes $513,000, vehicles may be in consumers' possession
AUG. 16: Vista Bank sues FirstCapital for $6 million, claims Dykes helped perpetrate check kiting scheme
AUG. 16: Bankruptcy court allows Reagor-Dykes continued use of cash collateral, hiring of CRO
AUG. 15: Reagor-Dykes Auto Group issues written apology
AUG. 14: Loss of Reagor-Dykes Chevrolet in Floydada a potential financial pitfall for city
AUG. 14: Vehicle auction company claims Reagor-Dykes owes it $687,000
AUG. 14: Ford Credit claims Reagor-Dykes is not following court orders; court grants extension to file docs
AUG. 13: U.S. Trustee opposes Reagor-Dykes request to hire chief restructuring officer
AUG. 10: Ford Credit: Reagor-Dykes fraud may be among largest of its type in U.S. history; GM files to terminate Floydada dealership
AUG. 9: Reagor-Dykes questions former CFO’s actions; Contractor claims $700,000 due now
AUG. 7: Former Reagor-Dykes employees claim they were not paid
AUG. 6: Customers concerned over Reagor-Dykes 'unwinding' process
AUG. 6: Ford suit against Reagor-Dykes on hold while bankruptcy case proceeds
AUG. 3: Judge approves Reagor-Dykes employee pay
AUG. 2: Mayor: Downtown Lubbock growth to remain strong regardless of Reagor-Dykes future
INITIAL STORY: Ford Motor Credit sues Reagor-Dykes; R-D files for chapter 11 bankruptcy