Daily Progress, Jacksonville, TX


December 11, 2012

DISCONNECT: Can an Texas Attorney General investigation into missing money cost Lon Morris College even more money?



This second "debtor in possession" loan authorized by the judge will come from "a syndicate of lenders" that includes Amegy Bank, N.A., Scurlock Foundation, Heartspring Methodist Foundation, and Martha Squibb, with Amegy serving as administrative agent, court documents show.

In return for the loan, the lenders will obtain liens on the Cole Learning Center at 410 Tilley; the Athletic Coach’s Office at 404 Devereux; the Chaplain’s Home at 409 Tilley; the Morris Hassel Alumni & Student Center, 502 Devereux; and the Turner Smith Visual Arts Building, 905 College, according to court documents.

The Texas AG opposed the LMC bankruptcy estate's application for this loan, asserting that without incoming funds, it would amount to a de facto sale of the college property on which liens were placed.

Incidentally, the court previously authorized the Debtor to borrow up to $750,000 from Amegy.

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