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Lon Morris Auction Rescheduled

Posted/updated on: December 6, 2012 at 2:59 pm
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JACKSONVILLE Judge Bill Parker of the U.S. Bankruptcy Court in Tyler has ruled in favor of the Lon Morris College bankruptcy estate by giving interim approval for a $500,000 debtor-in-possession loan to help complete the sale of the schools remaining assets. Thats according to KETK and a news release from the college. In addition, the bankruptcy court cleared the way for an asset auction in Dallas on Jan. 14, 2013, when the majority of the schools campus will be sold. Parker denied attempts by the Texas Attorney Generals Office to prevent the bankruptcy estate from securing the debtor-in-possession loan, which will be used to cover insurance, utilities and similar expenses, in addition to paying the professionals who are working to increase the estates value.

We are extremely pleased that the Court has approved this loan and cleared the way for what we believe will be a successful auction, says Dawn Ragan, the chief restructuring officer for the schools bankruptcy estate. The loan approved [Wednesday] will help maximize the value of the estate as we work toward satisfying the schools creditors, which include more than 100 former Lon Morris College employees who have not yet been paid for their work.

Todays ruling means the bankruptcy court agrees with our position that this loan and the upcoming auction are the best options available to pay the colleges creditors by maximizing the value of the estates assets, said Lon Morris attorney Hugh Ray III Wednesday. Our goal is to make sure the creditors are paid what theyre owed, and everyone involved is working hard to make that happen.



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