Two weeks shy of the one-year anniversary of the devastating Fourth of July flood that claimed the lives of 25 campers and two counselors, Camp Mystic’s ownership filed for Chapter 11 bankruptcy reorganization, listing its total debt at more than $10 million.  

Godwin Bowman executive vice president and bankruptcy attorney Sidney Scheinberg, who is not associated with the case, was featured on NBC DFW and called the legal filing an understandable move given the circumstances. He explained that a reorganization plan offers the Texas Hill Country camp an opportunity to consolidate all of its mounting debt into a single structure and work toward a solution that allows the institution to continue operating in the future. 

Mr. Scheinberg said, “then the bankruptcy court can either elect to allow that state court lawsuit to continue or move it over to the bankruptcy court to try the actual lawsuit or ultimately they try and work settlements with all the various people that have losses.”