The bankruptcy court has ruled on the interim cash collateral order in the Reagor-Dykes Auto Group case. The official filing of the documents today from Friday's hearing detail the judge's decision to authorize the use of cash collateral allowing the business to continue operating.
There are rules surrounding this authorization, firstly that the dealerships cannot exceed the amount created in a monthly budget. Ford has agreed to the use of cash collateral through August 16, 2018, which is the date of the next bankruptcy hearing.
The bankruptcy judge also ruled the Reagor-Dykes Auto Group employee wages, salaries and related items will be paid.
Some of the rules are:
The order also states Ford Credit’s authorized agents will remain on the Reagor-Dykes Auto Group premises during business operating hours. Ford Credit is authorized to continue to hold keys and titles to vehicles and to conduct audits and inspections of the collateral and Reagor-Dykes Auto Group’s books and records, including all records concerning the collateral.
If Reagor-Dykes Auto Group defaults on the terms of the interim order, Ford Credit can immediately terminate its consent to use the Ford Credit’s Cash Collateral.
The final hearing on the motion shall be held and is scheduled for Thursday, August 16 at 10 a.m. in the US bankruptcy courtroom.
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