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San Angelo Colts bankruptcy moves to liquidation

San_Angelo_Colts_2014The sad spiral of the San Angelo Colts (independent; United League Baseball) continues, as Texas Attorney General Ken Paxton asked for and was granted a shift of the team’s bankruptcy filings from reorganization to liquidation.

Paxton made the motion on behalf of Angelo State University and the Texas Tech University System. Angelo State University owns the land underneath the team’s former home, Foster Field, and a liquidation could give the university control of the facility. (No word on what the school would do with the ballpark.) The motion was made before the Bankruptcy Court of the Northern District of Texas. From San Angelo Live:

The San Angelo Colts originally filed for reorganization, not liquidation. A trail of previous court documents and Paxton’s filing indicate that the Colts have failed to follow through with reorganization. “The debtor has failed to enter into a new Stadium Use Agreement with ASU or commence payments to creditors as contemplated by the confirmed Third Amended Plan of Reorganization. Despite repeated inquiries, the Debtor has remained silent and failed to cure those defaults,” Paxton wrote the court. The stadium structure, financed by 1st Community Federal Credit Union and located on leased ASU land, is said to be the Colts’ largest asset.

United League Baseball, which owned the Colts, had talked about launching a 2015 season as late as January, but with the loss of LaGrave Field — home of the Fort Worth Cats — it was a matter of no suitable venues for a full circuit. This was not the first time creditors had threaten to seize Foster Field — the same thing happened in 2008, when San Angelo Banking Center filed lien and threatened to auction the facility.

RELATED STORIES: Colts bankruptcy opposed by court trustee; Mired in bankruptcy, Colts will end home season early; San Angelo woes mirror 2014 ULB season; San Angelo Colts file for bankruptcy protection against creditors

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