The San Angelo Colts (independent; United League Baseball) filed for Chapter 11 bankruptcy protection Tuesday, preventing a bank from foreclosing on the Foster Field mortgage.
1st Community Federal Credit Union had initiated foreclosure on Foster Field, with the team missing payments on a $384,000 mortgage. The ballpark was privately financed 14 years ago. From the Wall Street Journal:
“We filed Chapter 11 to forestall a foreclosure on the stadium,” [ULB owner and president John] Bryant told Bankruptcy Beat Wednesday. “The only objective here is to pay off the note. We have an enormous asset here, and we don’t want to lose it over $384,000.”
“This is a small-market team, and it’s a pretty small business,” he added. In its Chapter 11 petition, the team claimed total liabilities of between $1 million and $10 million.
Mr. Bryant, a former U.S. congressman, says he expects the bankruptcy to conclude within 30 to 60 days and that the bankruptcy will not interfere with the team’s season.
You can read the banktuptcy filing here. The list of unsecured creditors, including the league in the form of Reunion Sports ($500,000) and a $30,000 IRS tax lien, is there.
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