Reagor-Dykes Hints at CFO Misconduct, Requests CRO to Look into Ford’s Allegation
Wednesday night (August 8) Reagor-Dykes filed a motion in bankruptcy court for permission to hire a Chief Restructuring Officer (CRO).
KAMC News reports that the CRO would help investigate allegations of fraud and what led Ford Motor Credit to allege that Reagor-Dykes is "out of trust" with its agreements. A group of Reagor-Dykes companies filed for Chapter 11 Bankruptcy last week.
Reagor-Dykes stated in bankruptcy court records that Ford's audit in June 2018 showed positive results, but July's audit was very different.
"Having been taken completely by surprise by the alleged findings of Ford in its last audit...activities of the former CFO and perhaps others working in concert within the operations," need to be investigated, Reagor-Dykes said. The former CFO's name was not mentioned in the filing.
Reagor-Dykes goes on to say they need a CRO, "because of the departure of the former CFO and the current state of flux in which the Debtors are trying to make certain their financial data can be reliable and relied upon."
Reagor-Dykes has requested to hire BlackBriar Advisors LLC.
A hearing in bankruptcy court between Ford Motor Credit and Reagor-Dykes is scheduled for August 16th, 2018.
Ford Motor Credit is seeking immediate payment of over $40 million for vehicles sold by the Reagor-Dykes Auto Group.