Daily Progress, Jacksonville, TX

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February 1, 2013

SHOWDOWN: Lon Morris College bankruptcy hearings seemingly devolve into series of disputes; Texas AG asks for answers

Confirmation hearing on LMC liquidation plan takes place in Tyler's federal bankruptcy court Monday and Tuesday

(Continued)

TYLER —

The Texas Methodist Children's Home has reached an agreement with the estate to drop a claims in exchange for a $15,000 payment after claims are settled.

The AG's responses to the bankruptcy — it's filings, arguments and assertions from several possible legal angles — has been praised by some area residents.

"I think the Attorney General of Texas is the hero in the sorry spectacle that once was our beloved Lon Morris College," John W. Croft of Jacksonville recently stated. "Looks to me like he is trying to keep the playing field level."

Thomas Kelley, a spokesman with the AG's office declined Friday to elaborate on his office's filed objections. McCall, Ragan, and Houston attorney Hugh Ray III from the Texas offices of McKool Smith did not return requests for comment. Acker could not be located to comment.

 

 

 

 

 

EVENT: Lon Morris College bankruptcy liquidation plan confirmation hearing

DATE: February 4, 2013 TIME: 1:30 PM According to a new draft of the Lon Morris College bankruptcy estate's liquidation plan, approval of said plan is not the final order of business for bankruptcy proceedings. The following needs to be finished before that can become a reality:

 

• Sale of real estate in downtown Houston for about $250,000;

• Sale of trademarks and intellectual property;

• Completion of Department of Education audit and sale of the building securing the $591,485 letter of credit;

• Marketing and sale of mineral interests (including unencumbered mineral interests);

• Compromise of LMC's recently discovered claims regarding the placement of the athletic building on property not subject to the lien of Texas National Bank;

• Pursuit of litigation against former auditor Lynn Acker and Acker & Co. for accounting malpractice

• Pursue of litigation against insiders;

•Sale of other real estate not sold at auction;

• claims administration;

• Collection of non-student receivables; and

• Compromise of TMF and Heartspring foundation disputes.

 

SOURCE: Dawn Ragan, from a bankruptcy court document

 

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