Reagor-Dykes Auto Group requests approval to sell at auction; fi - KWES NewsWest 9 / Midland, Odessa, Big Spring, TX: |

Reagor-Dykes Auto Group requests approval to sell at auction; first bid on table

Reagor-Dykes Auto Group Logo Reagor-Dykes Auto Group Logo

The Chief Restructuring Officer (CRO) has filed documents in bankruptcy court on behalf of Reagor-Dykes Auto Group seeking approval to authorize and approve KamKad Automotive as a "stalking-horse bidder" and to allow the competitive bid process to begin.

A stalking horse offer, agreement, or bid is an attempt by a bankrupt debtor, in this case, Reagor-Dykes Auto Group, to test the market for their assets in advance of an auction of them. The intent is to maximize the value of its assets or avoid low bids, as part of (or before) a court auction.

While entering a stalking horse offer, RDAG can offer bidding protections such as breakup fees to its best bidder before the auction. These incentives enhance the value of the offering for the bidder which might lead to a better price offer before the auction begins. This higher offer is now the starting offer for the auction and may result in benefiting the debtor and its estate.

The documents say KamKad has until Sept. 21 to pay a $1 million deposit.  If approved as the stalking-horse bidder, KamKad will pay the $1,000,000 good-faith deposit into an interest-bearing escrow account. The stalking-horse bid from KamKad includes $25,321,520 in cash plus assumed liabilities and the payoff of a to-be-determined amount owed to Ford Motor Credit Company.

 With the Stalking Horse Bidder and a minimum purchase price now in place, Reagor-Dykes Auto Group believes that it is a proper exercise of their business judgment to implement the competitive bidding process.

Reagor-Dykes Auto Group seeks the court's approval of a proposed sale transaction and related Bid Procedures so that it could solicit competing offers for the Assets and the Business.  

RDAG is asking for the sale hearing to be held on Nov. 28, with a suggested close deadline of Nov. 30.

KamKad issued this statement on Tuesday afternoon:

KamKad Automotive Group is proud to enter a Stalking-Horse Bid for the Reagor Dykes Organization’s. KamKad Automotive hopes to quickly and efficiently make it through the bidding process and restore the faith and commitment to the West Texas communities affected by this ordeal.

The Reagor Dykes Organization have always been focused on giving back and serving the communities in which they operated, KamKad Automotive intends to continue this legacy of commitment. KamKad recognizes that numerous employee’s and their families have been displaced by these proceeding’s. Upon completion of the bid process, KamKad intends to quickly restore employment to as many previous employees as possible.

KamKad is dedicated to seeing customers through this tough time and restoring the confidence that was once in place not that long ago. KamKad looks forward to years of service to the West Texas communities and the families that call them home.

Related stories:

Ford Motor Credit files civil suit against Bart Reagor, Rick Dykes, 3 Lubbock locations

Reagor-Dykes Auto Group wants to set up appointments with affected customers

Int'l Bank of Commerce files motion to allow possible foreclosures on Reagor-Dykes properties

Bart Reagor, Rick Dykes may join Reagor-Dykes Auto Group Ch. 11 bankruptcy case

Documents in Reagor-Dykes Auto Group case reveal specific details of CRO's job responsibilities

Reagor-Dykes Bankruptcy Hearing: CRO hopes 90 of 900 cases to be resolved in 3 weeks

Company offering warranties, GAP insurance asking for $665k in unpaid debt from Reagor-Dykes

Ford objects to new attorneys for Reagor-Dykes Auto Group

Vista files suit in Federal court against FirstCapital for $18M, claims Rick Dykes used insider info

Bankruptcy judge amends motion for GM to terminate dealer agreement with Reagor-Dykes Floydada

Reagor-Dykes Auto Group fires bankruptcy attorneys

Reagor-Dykes Mitsubishi asked to move out or pay $55k per month rent due

Job seeking resources for RDAG employees

Dealership asking court to allow recovery of 15 vehicles sold to Reagor-Dykes

FirstCapital Bank responds to suit for $6M: Vista Bank is "weaponizing the judicial system"

Judge rules on use of Reagor-Dykes restructuring officer, paying employees

Reagor-Dykes issues apology to customers, friends, employees

Ford: 'Reagor-Dykes Auto Group created their own financial mess'

Judge grants order allowing Reagor-Dykes additional 30 days to submit financial documents

US Dept. of Justice objects to Reagor-Dykes request to hire Chief Restructuring Officer

Motion Granted: General Motors to terminate Reagor-Dykes Floydada Chevrolet franchise

Ford: This may be one of the largest frauds in the history of the United States

Reagor-Dykes Auto Group asks court to allow third party to investigate actions of former CFO, owners

Lubbock attorney breaks down what's next for Reagor-Dykes court cases

Judge issues rules for Reagor-Dykes Auto Group to use cash to operate

What you need to know about the Reagor-Dykes lawsuit

Ford Motor Credit Company sues Reagor-Dykes Dealerships; RD files for bankruptcy

Lubbock attorney considers options for Reagor-Dykes bankruptcy

Reagor-Dykes Auto Group files emergency motion to pay employees, Ford files objection

Some Reagor-Dykes departments closed until further notice; judge orders no hearing Aug. 8

Tax assessor: Recent Reagor-Dykes customers should check with dealer 

Copyright 2018 KCBD. All rights reserved.

Copyright 2018 KCBD. All rights reserved.

Powered by Frankly