Operating under bankruptcy protection, the San Angelo Colts (independent; United League Baseball) will end its home season this Friday and switch eight remaining games to other ULB venues.
The move, as well as recent court decisions, put the future of the team in doubt.
1st Community Federal Credit Union of San Angelo, a lienholder on the Colts’ bank accounts and receivables, had sought to cut off the Colts ownership — which is essentially league ownership under John Bryant and Byron Pierce — but U.S. Bankruptcy Court, Northern District of Texas allowed owners to use cash collateral until Jan. 1, 2015, and ordered that the group pay $3,000 annually on debt on the 15th of the month. In addition, the court placed other conditions on the usage of collateral. This amount isn’t enough to cover principal on the Foster Field mortgage, however, and the issue remains how the owners will restructure debt while not generating income at the ballpark.
From the San Angelo Standard-Times:
The San Angelo Colts Baseball Club LLC, which filed for Chapter 11 bankruptcy on July 1, was given an amended court order Aug. 7 to use its cash collateral by the U.S. Bankruptcy Court, Northern District of Texas. The first order was signed July 31.
Under the terms of the Aug. 7 order, the Colts are required to make $3,000 payments on the 15th of each month starting in August, “As further adequate protection,” documents signed by U.S. Bankruptcy Judge Barbara J. Houser state.
The Aug. 7 court order also stated the Colts’ use of cash collateral would be extended through Jan. 1, 2015. That agreement could also be extended.
United League Baseball is now down to four teams and two venues; Brownville and Rio Grande share Harlingen Field, while the Fort Worth Cats play out of LaGrave Field.
RELATED STORIES: San Angelo woes mirror 2014 ULB season; San Angelo Colts file for bankruptcy protection against creditors
—
Share your news with the baseball community. Send it to us at editors@augustpublications.com.
Are you a subscriber to the weekly Ballpark Digest newsletter? You can sign up for a free subscription at the Newsletter Signup Page.
Join Ballpark Digest on Facebook and on Twitter!
Follow Ballpark Digest on Google + and add us to your circles!