The Chapter 7 bankruptcy filing by San Angelo Colts LLC allows for the owners to restructure debts to maintain ownership of assets, which includes Foster Field. But trustee Mary Francis Durham is opposing it, arguing that it should be either converted to Chapter 13 — which would allow for dissolution of assets — or dismissed with prejudice, which means anyone with secured or unsecured claim could go after team assets. Why did she oppose the filing? Because the team owners, including majority owner John Bryant, failed to file operating reports in an orderly fashion. From the San Angelo Standard-Times:
The motion, which was filed Tuesday, states that the case should be converted to Chapter 7 bankruptcy or dismissed with prejudice because “The Debtor has failed to file monthly operating reports and failed to provide the United State Trustee with tax returns, proof of insurance, and proof of debtor-in-possession bank account.”…
The action is being taken to protect the interests of creditors and the estate, the motion argues. “Cause exists to dismiss the case or convert to chapter 7 due to the absence of a reasonable likelihood of reorganization and continuing loss to the estate,” the motion states….
The motion’s conclusion by trustee Mary Francis Durham states: “Dismissal with prejudice would aid creditors seeking to take action against the Debtor and its property and is appropriate because the Debtor did not file operating reports and has filed bankruptcy before.”
As noted, this is not the first bankruptcy filing from league owners.
It’s been a rough postseason for United League Baseball: the Fort Worth Cats are not returning to LaGrave Field, and there’s been little activity for the circuit since the season ended.