In the Reagor-Dykes bankruptcy case, a judge has approved the potential auction of 13 dealerships owned by Reagor-Dykes.

The week of September 10th, the KamKad Automotive Group offered to purchase the 13 properties for just over $25 million dollars and the Reagor-Dykes CRO proposed an auction, with KamKad as a stalking horse bidder.

Afterwards, Ford Motor Credit, General Motors, and Gulf States Toyota raised objections to the auction, citing KamKad’s lack of Asset Purchase Agreements with each dealer. KAMC News reports that KamKad currently has agreements with Hyundai and Alfa Romeo, but not with Ford, GM, or Toyota.

Tuesday, Sept. 18, a judge approved a Reagor-Dykes auction, which could be held November 15th, 2018, but KamKad must first spend the next two weeks negotiating written agreements with Ford, GM, and Toyota. Any company wishing to outbid KamKad’s initial $25 million dollar offer to buy 13 Reagor-Dykes dealerships will need to bid at least $1 million dollars more to initiate an auction.

Tuesday, the judge also ruled that Reagor-Dykes will be allowed to use its approved cash on hand for dealership rent payments, which was not allowed by the original cash collateral order issued by the court. Reagor-Dykes can also use money to pay for other immediate expenses, like employee salaries, until at least October 18, 2018.

As the bankruptcy case continues, court dates have been scheduled regarding the Ford Motor Credit lawsuit against Reagor-Dykes. KAMC News reports that the case, which involves three Reagor-Dykes companies not in bankruptcy, will be set for trial at 9:00 a.m. on February 3rd of 2020. Bart Reagor and Rick Dykes are also involved in the lawsuit and are expected to appear in court.

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