Daily Progress, Jacksonville, TX

Homepage

November 30, 2012

BREAKING: Texas Attorney General seeks to halt Lon Morris Dec. 13 auction

The AG contends the Lon Morris bankruptcy estate is trying to sell properties it does not legally own

(Continued)

JACKSONVILLE —

• That auction procedures be amended and clarified to ensure a liquidated purchase price be allocated for each individual parcel or property;

• That the debtor agrees not to sell any unencumbered restricted assets for less than 70 percent of appraised fair market value;

• That the college be required to seek to surcharge the collateral of the secured creditors for the cost of the auction.

• That the United States trustee should not be restricted to merely observe the auction; and

• That the proceeds from the sale of any unencumbered restricted property is escrowed pending the resolution of the OAG's declaratory action against Lon Morris;

Referenced in this "objection to debtor's expedited motion … authorizing and scheduling an auction for the sale" is a lawsuit the Texas Methodist Foundation filed against the Lon Morris College bankruptcy estate and Texas Attorney General Greg Abbott this month to prevent the college's chief restructuring officer, from liquidating five separate charitable endowments totaling $265,000 to pay Chapter 11 bankruptcy costs.

The Texas Attorney General's Office also is investigating a missing $1.3 million from an endowment that should have reverted to Sam Houston State University after LMC declared bankruptcy.

 

 

 

Text Only
LOCAL NEWS
LOCAL SPORTS
LIVING