Bankruptcy

Six Flags Mall in Arlington Heads Into Bankruptcy

By J. Michael McBride

On May 5 the Six Flags Mall in Arlington filed for bankruptcy protection under Chapter 11 -- the same day the property was posted for foreclosure auction by three lenders. In the last six months lenders have had their foreclosure efforts averted five times. The major creditors include the IRS, the Texas Workforce Commission, and the Tarrant County tax assessor-collector.

You can review the entire article on the Six Flags mall filing at: http://www.star-telegram.com/business/story/638933.html

After reviewing the court docket sheet, the bankruptcy filing was a skeleton filing with nothing but the petition filed. The debtor has until May 20th to file the required schedules, statements, and a listing of its 20 largest creditors. The meeting of creditors is currently scheduled June 12th and proof of claims are due September 10th. A Notice of Appearance was filed by International Bank of Commerce last Friday.

Background Information:
The two investors for the mall, Thomas E. Morris and Denis Engel, were involved in a lawsuit wherein Engel sued Morris accusing him of mismanagement of the Nolan River Mall in Cleburne. The business owned by Morris later filed for bankruptcy protection for the Cleburne mall in February. The settlement agreement reached by Morris and Engel resulted in Morris retaining ownership of the mall in Arlington and the Corpus Christi Sunrise Mall and Engel with the Cleburne mall. Morris agreed to pay all liens held against the Cleburne property, which would include the $98,378.64, 2007 property taxes for Johnson county.

An article on the Cleburne bankruptcy filing is at: http://www.cleburnetimesreview.com/local/local_story_074170432.html

Chandra

Full post as published by Texas Lawyer Blog on May 13, 2008 (boomark / email).