Texas Attorney General Ken Paxton asked the Bankruptcy Court of the Northern District of Texas to convert the San Angelo Colts baseball team’s bankruptcy to Chapter 7, or liquidation, on behalf of the Texas Tech University System and Angelo State University. The order was granted last week, according to court documents.
The San Angelo Colts originally filed for reorganization, not liquidation. A trail of previous court documents and Paxton’s filing indicate that the Colts have failed to follow through with reorganization. “The debtor has failed to enter into a new Stadium Use Agreement with ASU or commence payments to creditors as contemplated by the confirmed Third Amended Plan of Reorganization. Despite repeated inquiries, the Debtor has remained silent and failed to cure those defaults,” Paxton wrote the court.
The stadium structure, financed by 1st Community Federal Credit Union and located on leased ASU land, is said to be the Colts’ largest asset.
A previous court filing from the TAG on April 24 stated that the Colts had 10 days to enter a new lease agreement, by May 4.
The San Angelo Colts were the minor league baseball team in San Angelo. Its last season was in 2014. There is no season planned for 2015.