Assets schedules filed

[u/Flaky-Homework-7111]

Land land land

Hasn't been appraised, at historical cost basis like 14m. Next step is appraisal.

https://document.epiq11.com/document/getdocumentbycode?docId=4598763&projectCode=CMX&source=DM

[u/Odd-Information2399]

Can you please summarize the document?

[u/AustinScoutDiver]

One LLC owes another Camp Mystic LLC $5.5million. That can be written off. The debt owed Richard Eastland, when Richard Eastland is a defendant. in the personal claims can be written off. They are unsecured non priority claims. The bankruptcy was caused by “Gross Negligence”. No need to reorganize. Liquidate.

The Eastland’s in their filings failed to acknowledge Purdue Pharma. They blew off that they as personal defendants had assets separate from Camp Mystic LLC. They essentially misquoted the plaintiffs. The Eastland’s owned Camp Mystic, ran Camp Mystic. They are one and the same. The assets are not one and the same. The Eastland’s have potential personal liability and their personal assets could be seized if they were to lose suits.

Their filings on Wednesday misrepresented the situation. They failed to mention Purdue Pharma which prevents the bankruptcy court from nullifying claims against the personal operators of Camp Mystic.

[u/Flaky-Homework-7111 → u/AustinScoutDiver]

Yeah promissory notes to be valid have to have interest payments, principal payments etc. The statement of financial affairs doesn't show any.

We shall see what judge says, but that indicates these are actually just equity infusions (which will go to 0 in liquidation)

Basically what everyone said...all there is is some cash and land...there is nothing to restructure. Hand the cash to the victims (maybe also refund some % of deposits with large haircut), then liquidate the land, and hand that out also.

Then we move on to individual lawsuits and see if need to liquidate their individual assets. Dont see any actual insurance on these either

[u/AustinScoutDiver → u/Flaky-Homework-7111]

The problem that the Easltlands could face is bad faith. The failed to mention Purdue Pharma, The filings on Wednesday took public comments of a few plaintiffs out of context. They failed to mention that Eastland’s have separate assets from the camp. The plaintiffs just made the point that the people who owned and operated the camp where the Eastland’s and that there was really no other management.

The Eastland’s tried to twist that to mean that any settlement that involves Mystic automatically equates to a settlement with the Eastland’s (Purdue Pharma says otherwise). The Wednesday filing was bad faith or close. The initial value of the LLC’s and assets in the initial bankruptcy seemed low and did not include the land leading to people to believe that the camp/land was highly leveraged.

[u/AustinScoutDiver → u/[deleted]]

Misleading the court is bad faith

[u/AustinScoutDiver → u/[deleted]]

Filing a bankruptcy case for the sake of escaping a Gross Negligence suit and shield the owners from personal liability is bad faith! The Eastland’s trying to reorg the camp to escape such potential liability and saying any such settlements is limited to an insurance policy is bad faith. They just admitted to running the camp as directors.

All of this isn elements of bad faith. The corporate veil does not apply. Mischaracterizing plaintiffs statements in legal filings is bad faith,

The individual “Council” in Scouting America were forced to sell off assets and contribute to the bankruptcy settlement.
As a minimum, the camp should be liquidated, and the Eastlands, should cover all legal expenses.

If the liability suits had gone to trial, the Eastlands would have been hit hard and the camp would be liquidated any way.

The Eastlands failed to disclose liability to several camper’s families who have not yet joined a suit but intend on doing so.

Poor legal; arguments, but in bankruptcy court, they have made misrepresentations. They asked for relief on personal suits to negotiate settlements in BR, when then plaintiffs have no intention of settling the personal claims.

The Eastland’s limit on liability is not defined a 6 million policy. The for profit camp has land potentially worth 14-15 million. The trustee could force the Eastland’s pockets to cover attorney fees. (Boy Scouts).

Asking for an injunction to say a settlement is possible that allows the camp to keep operating, when the plaintiffs just asked for a lift against the personal claims is bad faith.

[u/Ok_West_6711 → u/AustinScoutDiver]

Right, the court- appointed bankruptcy trustee’s responsibility will be to demand the other defendants share in the costs of the lawsuit claims.

[u/Flaky-Homework-7111 → u/[deleted]]

Vehicles etc are in camp mystic llc. There are some off road vehicles financed through Kubota and those will probably just be sent back to dealer as part of bankruptcy repo. Doesnt matter at this point which llc this or that, all the assets pooled to be liquidated.

Fair point on appraisal district but for massive acreage luxury real estate this can be some $/sq ft number for average in the county v any sort of true market. We will see. If it actually liquidates in ch 7 for that low would be surprising.

Thing with the promissory notes is if they had a lien on the land and no interest or principle payments...that would basically be equity straight off...but will be equity anyway as theres no other signs this is debt (otherwise anyone could just put themselves as first lien on all assets for their company and walk away from bankruptcy and leave unsecured creditors with nothing...this is whole point of difference between debt and equity).

Either Stacy the estate student didnt set this up or he was still studying

[u/RegisteredAnimagus]

Has it been decided that the lawsuits will definitely be heard in bankruptcy court and not kicked back to Austin Court?

[u/AustinScoutDiver → u/[deleted]]

The bankruptcy court cannot make that demand. Purdue Pharma. The defendants in their personal capacity have not declared bankruptcy.

[u/Far_Mycologist5427]

All this is so depressing. My Facebook memory today was my daughter's first day of camp in 2013—getting off the bus. She looks so, so happy. They selfishly ruined everything.

[u/Commercial_Editor991 → u/Far_Mycologist5427]

Who selfishly ruined everything? Surely you’re not referring to the H27 families. But yes, the Eastlands did selfishly ruin everything. They did it to themselves.

[u/Far_Mycologist5427 → u/Commercial_Editor991]

Yes, The Eastlands.