Ridglea Theater Trust Deadline

Wednesday, August 12th, 2009

A bankruptcy judge from Fort Worth gave R.K. Maulsby Family Trust trustee until Nov. 4 in order to sell the historic Ridglea Theater located on the west side of the city even for just a pending deal.  Otherwise, they shall face foreclosure.  Doug King, the trustee, told Russell Nelms (the bankruptcy judge) that he has accepted a contract from the buyer putting down earnest money of $50,000 and then paying $1,075,000 for the property.

King said that selling the property would generate enough money to pay the creditors.  However, he declined to name the buyer after the hearing.  As the only asset of Maulby’s Trust, it filed for a Chapter 11 protection to prevent property foreclosure.  Dallas’ FixFunding posted the property for a possible foreclosure because it’s behind on its payments for a $1.1 million loan.  It also owes $260,000 to TaxEase.

Nelms said “Under that contract, I gave a chance for the debtor to perform.  However, it’s a short lease.  There will be dismissal of the bankruptcy case on Nov. 4 if the contract will fall through.”   Chad Berry, the attorney representing FixFunding and Elizabeth Zieglar, the trustee of federal bankruptcy court, asked Nelms to dismiss this bankruptcy case and argued that the family trust has no valid business purpose.

Tags: attorney, bankruptcy, Chad Berry, Doug King, Elizabeth Zieglar, Family Trust, FixFunding, foreclosure, Fort Worth, judge, Maulby's Trust, Ridglea Theater, Russell Nelms, trustee
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