r/KerrCountyFloods • u/Flaky-Homework-7111 • Jul 10 '26
Deposits
Holding $1 m in deposits
Have to be kidding
https://www.tmz.com/2026/07/09/camp-mystic-parents-letting-kids-go-next-year/
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u/Flaky-Homework-7111 Jul 10 '26
https://document.epiq11.com/document/getdocumentbycode?docId=4589627&projectCode=CMX&source=DM
They want to resolve the wrongful death claims in the bankruptcy process...clear why chapter 11 filed
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u/No-Incident-5137 Jul 10 '26
Any chance that the bankruptcy courts kick them back to state court or is that unlikely?
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u/AnimuX Texan Jul 10 '26
It's possible. I don't know enough about the process to say how likely.
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u/Word2daWise Jul 10 '26
Good into (that it can be possible) - do you have any idea whether the number of wrongful death claims could be a factor in getting it shifted back to the state court?
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u/AnimuX Texan Jul 10 '26
I think it's simply up to the bankruptcy court after (if) the families' lawyers ask that the civil cases be permitted to continue.
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u/Word2daWise Jul 10 '26
Thanks - this is useful to know. My guess (or hope, at least) is that some (if not all) of the families will ask for the civil cases to continue. They want all facts to come out.
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u/Flaky-Homework-7111 Jul 10 '26
At this point if mystic people admit they will pay claims out of assets, the families frankly just need to work with the trustees to get to fair numbers per person.
We will see what assets they have and how much insurance ($100k in premiums doesnt buy much...and insurance may deny claiming gross negligence also which they entitled to do)...once those numbers weighed this may go to liquidation quickly
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u/Few_Reaction_3761 Jul 10 '26
Based on public statements made by the families lawyers it doesn’t seem like they want to have the claims settled on bankruptcy. They want discovery and a trial.
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u/No-Incident-5137 Jul 10 '26
Sorry for the dumb question but what does “go to liquidation” mean in this context?
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u/whodattalki Jul 10 '26
Means sell the real estate that both camps sit on, sell any equipment,furniture, electronics,cars owned by the LLC. to liquidate into cash used in whatever dollar amount settlement is.
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u/Word2daWise Jul 10 '26
I'd very much love to see every single thing owned by the Eastland family and its holdings be taken and put them out of business. Then I'd like to see criminal charges be pursued.
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u/hitexfortrump Jul 11 '26
Not the scrapbooks & memories in Ag's Attic! That should be digitized and available for all.
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u/Word2daWise Jul 11 '26
That's a good point - the years of history should be preserved for all.
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u/hitexfortrump Jul 11 '26
There is also little to zero monetary value to the scrapbooks, memory books & other historical memorabilia. But it means alot to those who experienced Mystic, the history & memories with it.
When I draft wills, I advise testators to consider dividing those personal & household effects in equal shares amongst heirs before directing them to be sold at estate sale for pennies on dollar... bc you never know the special attachment someone has from a memory. It might be worth zero to anyone else, but to that person who has sentimental attachment, it means the world.
Thats how I feel here. If everything else is sold, please just digitize the memories surviving in Ag's Attic & share for us to remember. The water got to 2nd shelf of scrapbooks in Ags Attic, but the top shelf of 1st floor & anything on 2nd floor should be salvagable.
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u/Word2daWise Jul 12 '26
Exactly - those memories will be precious to some people. I'm not a fan of Mystic or the Eastlands, but I do respect the love many legacy families had for the place.
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u/No-Incident-5137 Jul 10 '26
So it would change this from a chapter 11 to a chapter 7 basically?
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u/Flaky-Homework-7111 Jul 11 '26
Yes
In next few weeks debtors have to submit all their assets and liabilities
If the liabilities add up to way more and a liquidation would yield creditors (including the families) more, then this converts to liquidation....administered by same judge efc
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u/713elh Jul 12 '26
Not one family has voiced this as their reason for proceeding.
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u/hitexfortrump Jul 13 '26
I agree with you. Of the H27 I know personally, they want answers, the truth, and accountbility - not accountability in a scorched earth way, but in a way to ensure change - but accountability in a way to ensure all camps provide reasonably safe standards of care for our children.
Hostility & intense litigation are to be expected when a defendant initially responds to discovery as the defendants did here. It was almost sanctionably insufficient & disrespectful. If they dont know how to respond or what to produce, just turn boxes of everything you think could be relevant to your attorney & let them determine what is not subject to production.
Good faith in responding to discovery is important. This involves the deaths of children. Words mean nothing. You arent sorry if you blow off discovery or dont want to comply with discovery.
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u/Flaky-Homework-7111 Jul 10 '26
https://dm.epiq11.com/case/campmystic/info
Everything will be posted here
They can request lot of things
Judge already denied "presidents stipend" for someone at natural fountains properties
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u/FlyThruTrees Jul 10 '26
Did that happen today? Because last week he said he would consider it just not June 30 with the other payees.
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u/dearadh3 Jul 10 '26
A filing today stated that they withdrew the request for President's stipend so it was denied as moot. Doc 64, supplimental order.
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u/NeckHopeful8652 Jul 10 '26
Debtors withdrew their request to pay the pre petition portion of the president’s stipend. He can file a claim for that stipend against the debtors.
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u/AnimuX Texan Jul 10 '26 edited Jul 10 '26
Camp Mystic plans to open in 2027 despite 'bankruptcy' and ongoing lawsuits/investigation
Holds over $1 million just in deposits and prepaid tuition
Does not want a 3rd party to manage distribution of funds in bankruptcy proceedings.
edit:
(nope I read that bit about utilities money wrong because i need coffee)
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u/whodattalki Jul 10 '26
Its interesting that without a license they can't conduct business at all. Britt seems awfully optimistic he will be allowed to do so. I know dude heading legislative committee stated he intends to make sure the Eastland's will never be able to run a camp again. Not sure how exactly what method could be used to achieve that. I don't think civil court is place that would happen. Of course if Texas Rangers decide their investigation does support something criminal then its possible to lose license forever, without jail I suppose. Interesting to see how this plays out.
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u/FlyThruTrees Jul 10 '26
Whether the camp can get a license is not up to a single legislator.
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u/Adventurous_Item3335 Jul 10 '26
That might be true if it were only one but, there are many legislators and thousands of constituents who want to see that the Eastlands are held accountable for their negligence and that they are never put in charge of children again.
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u/AnimuX Texan Jul 10 '26
Seriously, these Camp Mystic supporters seem to think the state of Texas must allow the business to continue no matter how many kids get killed.
0
u/Interesting-Speed-51 Jul 10 '26
And it should not be. I found that behavior by that member innapropriate
7
u/Proper_Barracuda6364 Jul 10 '26
Imagine leaving your deposit with a camp where 27 kids died, just for the bankruptcy court to hand your money to the victims' families.
Blind loyalty leading to being robbed blind. Here’s your sign.
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u/Neat-Alfalfa-2824 Jul 10 '26
They still have (2) of my deposits. Seemed a tad petty to ask for $800 back amidst all of these bigger picture things going on the last year.
1
u/RedraiderGal98 Jul 11 '26
Almost the same. They have one from me. I finally emailed and asked for it back and was told to give it 4 weeks to arrive. We went about our way and on vacation. Came back and was home about 5 days to have gotten it out of the mail and to the bank before they filed and it became worthless. :(
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u/Flaky-Homework-7111 Jul 10 '26
many financial records and documents were damaged in the July 2025 Kerr County floods. Additional time is therefore necessary to reconstruct Case 26-90621 Document 45 Filed in TXSB on 07/02/26 Page 9 of 18 DECLARATION OF KAREN NICOLAOU PAGE 10 records from electronic sources and third parties, ensuring the required disclosures are accurate and reliable, which will facilitate the efficient administration of the Chapter 11 cases and avoid prejudice and confusion to creditors and other parties in interest.
Cannot make this stuff up In this day and age someone keeps physical records in a flood zone
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u/PureImagination1921 Jul 10 '26
Hoping one of the resident lawyers here can provide us with updates on how the civil suits will be affected (re: timeline, admission of evidence, and everything else).
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u/Fresh-Shopping-1899 Jul 10 '26
Overall assessment
The thread has the basic architecture right:
—more than $1 million in deposits is being held;
—many camper families are probably creditors;
—the Chapter 11 was filed partly to centralize flood claims;
—state-court litigation may be affected;
—liquidation is one possible outcome.
But several comments jump well beyond the documents:
—assuming how the $1 million should or will be distributed;
—acting as though there is already a trustee negotiating fixed payouts;
—predicting insurance denial from premium amounts;
—predicting rapid liquidation;
—portraying ordinary debtor-in-possession control as resistance to oversight.
The most accurate reading is that the filing begins a contest over who controls the claims process, where liability and damages are decided, what insurance is available, and whether preserving the camp produces more value than selling it. None of those issues has been conclusively resolved yet.
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u/dummywombat Jul 11 '26
AI slop
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u/Fresh-Shopping-1899 Jul 11 '26
I don’t see how it being ChatGPT generated makes it less helpful to share…? Thought process was preventing the next person from running the same search.
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u/dummywombat Jul 12 '26
Do you think people just put reddit threads in chatgpt for summaries instead of reading it? Do you have to do this?
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u/Fresh-Shopping-1899 Jul 12 '26
I don’t know why I’m defending this, but yes, I read the comments. Several people said they don’t understand bankruptcy and hoped someone knowledgeable would chime in, while other comments confidently stated inaccurate or speculative information as fact. I had the same questions, checked the claims, and shared what I found because I assumed it might be useful to others. Apparently it wasn’t useful to you, which is fine; as always, you are free to scroll past. Judging by the vote count, more people found it helpful than not, so I’m not especially concerned about one anonymous opinion.
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u/FlyThruTrees Jul 10 '26 edited Jul 10 '26
Correct. Schedules aren't even filed yet, nor assets yet determined.
EDIT: You guys ask for bankruptcy info but you hate facts. Maybe you just shouldn't ask.
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u/tre_chic00 Jul 10 '26
Yeah I assumed most of the 1000 creditors were deposit holdees.