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

Last Tuesday the City Council of Vallejo, California, unanimously agreed to the bankruptcy filing after the two-month long mediation sessions with unions failed to balance the fiscal plan long-term. Monday the unions proposed a $10.6 million salary reduction in a press conference that could avert the bankruptcy filing. "We do not believe the city is bankrupt, and that filing for bankruptcy is like a big ship aimed at an iceberg," said Mat Mustard, vice president of the Vallejo Police Officer's Association.

The city has been advised that they will run out of money before the end of June and should file bankruptcy within the next 30-60 days. The unions had a separate financial audit conducted on the city finances on May 5th by Harvey M. Rose Associates, dubbed the "Rose Report", which shows a possible $4 million in reserve. Various city council members said that the Rose Report was based on wrong assumptions.

We will keep you posted.

Article: http://www.thereporter.com/ci_9243067?source=rss

Chandra