Hon. Bill Parker of the U.S. Bankruptcy Court for the Eastern District of Texas has ruled in favor of Lon Morris College's bankruptcy estate by giving interim approval for a $500,000 debtor-in-possession loan to help complete the sale of the school's remaining assets, according to a newswire report yesterday. The 158-year-old college, Texas's oldest junior college, filed for bankruptcy protection earlier this year. In addition to approving the loan, the bankruptcy court also cleared the way for an asset auction in Dallas on Jan. 14, 2013, when the majority of the school's 112-acre campus will be sold. In his decision issued yesterday, Judge Parker denied attempts by the Texas Attorney General's Office to prevent the bankruptcy estate from securing the debtor-in-possession loan. The auction will include approximately 50,000 square feet of academic lecture halls, dormitory buildings, a technology center, a gymnasium, and fields for football, baseball and other sports.
