Daily Progress, Jacksonville, TX

January 7, 2013

Bankruptcy judge extends voting deadline for upcoming Lon Morris College auction as Ameribid prepares to auction property

The LMC bankruptcy estate could be sold in as few as one, as many as 16, parcels, reports show

Ben Tinsley
Jacksonville Daily Progress

TYLER —  A federal bankruptcy judge has extended the voting - or bidding - deadline for 43 creditors in this month's Lon Morris College auction.

The bankruptcy auction will still take place at 11 a.m. Jan. 14. But the creditors who did not receive a necessary disclosure statement and solicitation package from LMC in mid-December will be allowed to wait until Feb. 1 to submit their votes, court records show.

A confirmation hearing, during which sales are expected to formally be approved, still will take place on Feb. 4.

U.S. Bankruptcy Judge Bill Parker ordered this change Jan. 4.

A press release from AmeriBid, the company hired to handle the auction, was distributed to area media Jan. 7 announcing the LMC bankruptcy estate could be divided into a few as one or as many as 16 groupings for the sale.

As far as the deadline extension issue is concerned, Houston attorney Hugh Ray III (LMC's counsel), informed the court in writing that estate personnel corrected the discrepancy after learning about it. The creditors include the Texas Methodist Foundation, State Farm Insurance of Austin and 41 individuals.

"The Motion to Extend seeks to ensure that the Affected Creditors have ample opportunity to vote on the Chapter 11 Plan," Ray's motion reads.

Meanwhile, in the press release distributed Monday, AmeriBid President Stephen Karbelk was quoted as declaring the parceling for the auction comes after speaking to many prospective buyers about what they are looking for in the auction.

"We've organized the property by types of buildings," Karbelk writes in the release. “For example, most of the classroom buildings, dormitories, cafeteria and other facilities will sell as a single lot, which will interest those seeking a location for a college or similar property. The Wilson Administration Center -- which is suitable for use as a high-end office building or for executive education -- will sell as part of the larger campus or as a one-building lot, with surrounding land and parking."