New Braunfels’ Whitewater Amphitheater filed for Chapter 11 bankruptcy reorganization Tuesday in a move that halts the music venue’s scheduled foreclosure sale, the Express-News reports.
Kona Coast Venture Ltd., the outdoor concert site’s operator, filed the petition in U.S. Bankruptcy Court in San Antonio nearly a half hour after the sale was scheduled to get underway, according to the daily. Under Chapter 11 filings, a company works with a judge to reorganize its operations and pay off its debts.
Austin attorney Lynn Butler, which represents Kona Coast, told the Express-News that Tuesday’s filing resulted in an immediate halt of the foreclosure sale.
“There is an offer to purchase the entire complex that will pay all creditors,” Butler said. “We ran out of time to close the sale prior to the foreclosure date.”
In a statement to the Express-News, Whitewater founder William Korioth said the court filing will allow the venue to stabilize its operations and ensure longterm viability. He added that all concerts scheduled for this summer will continue as planned.
“Our focus remains on our employees, our guests, our artists, our partners, and preserving everything that has made Whitewater special,” Korioth said.
Whitewater has assets valued between $10 million and $50 million and owes $1 million to $10 million, according to its Chapter 11 filing.
Butler told the Express-News the business has struggled with “liquidity issues” due to ongoing litigation but added that the reorganization should put the legal issues behind it.
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