Posted 11:18 am Wednesday, October 31, 2012
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Lon Morris has plans to sell its property at auction
A bankruptcy judge today authorized the college to employ AmeriBid LLC as the auctioneer.
Lon Morris College, which has faced serious financial struggles in recent years, filed an application Oct. 25 in the United States Bankruptcy Court Eastern District of Texas, requesting the authority to employ AmeriBid, who will sell “a substantial amount of the property” of the Jacksonville estate. Lon Morris initially sought to employ Tranzon Auctions Resolutions, but that application was withdrawn, court documents show.
Lon Morris “is proposing a plan that encompasses an auction of the secured and unencumbered property at the core of the campus as a whole,” attorneys write. “The auction as a cash-only, non-credit bid auction should create a mechanism by which the free market values the assets and gives the greatest recovery to the unsecured creditors.”
The auction will be conducted using two categories – one for core assets, meaning property that is essential for an education facility such as dorms and the theater, and another for non-core assets, such as single-family residential structures around the college. A target date for the auction is mid-December. A marketing campaign is expected to begin in the next 10 days, focusing on existing state universities and other groups.
“Obviously it's a very important sale to Jacksonville. We really want … to have the community on our side and to have the collaborative approach (in selling the property),” said Brent Wellings of AmeriBid.
TylerPaper.com will post more details as they become available.
Updated Wednesday, October 31, 2012 at 11:18 a.m. CDT
Lon Morris “is proposing a plan that encompasses an auction of the secured and unencumbered property at the core of the campus as a whole,” attorneys write. “The auction as a cash-only, non-credit bid auction should create a mechanism by which the free market values the assets and gives the greatest recovery to the unsecured creditors.”
The auction will be conducted using two categories – one for core assets, meaning property that is essential for an education facility such as dorms and the theater, and another for non-core assets, such as single-family residential structures around the college. A target date for the auction is mid-December. A marketing campaign is expected to begin in the next 10 days, focusing on existing state universities and other groups.
“Obviously it's a very important sale to Jacksonville. We really want … to have the community on our side and to have the collaborative approach (in selling the property),” said Brent Wellings of AmeriBid.
TylerPaper.com will post more details as they become available.
Updated Wednesday, October 31, 2012 at 11:18 a.m. CDT
