Lajitas files for Chapter 11

The Lajitas resort in South Brewster County has filed for Chapter 11 bankruptcy, the Avalanche confirmed Tuesday.

According to a representative of the federal bankruptcy court in Midland, the resort filed for Lajitas Resort Ltd., Lajitas Airport Ltd., Lajitas Real Estate Ltd. and Lajitas Utility Co. Inc. on Monday, July 2.

A Chapter 11 filing is typically used to "reorganize" a business, according to a U.S. Courts website.

According to Antonia Korosec, the assistant to resort General Manager Daniel Hostettler, Lajitas will "definitely" remain open for business throughout the proceedings. She said an official statement had been prepared, but it wasn't available at press time Tuesday.

The bankruptcy filing comes on the heels of a foreclosure sale which had been re-scheduled for July 3 after the original sale on June 5 was postponed to allow the resort more time to pay back a $12.5 million loan owed to New England lender.

Lajitas currently owes almost $22,000 in interest and penalties on its 2006 tax bill.

"We are secured creditors," said County Judge Val Beard. "The odds are very good that we will receive that payment in full. It means delay, but we are in a much stronger position than the unsecured creditors."

According to the Brewster County Appraisal District, Lajitas is valued at $16,969,433, including the resort, airport, golf course and adjacent real estate.

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Lajitas files for Chapter 11

The Lajitas resort in South Brewster County has filed for Chapter 11 bankruptcy, the Avalanche confirmed Tuesday.

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