Camp Mystic seeks to sell the property in bankruptcy as legal problems grow, tell me about this news in (https://apnews.com/article/camp-mystic-flood-bankruptcy-e8436d4111ced32b318f13243f4aaa9e)

Camp Mystic’s owners have proposed selling the historic property as part of a Chapter 11 bankruptcy plan. This move comes in the wake of mounting legal pressure following the catastrophic July 2025 flash flood along the Guadalupe River in Texas, which resulted in the deaths of 25 campers, two counselors, and the camp director.

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Court records show that the camp listed liabilities between $10 million and $50 million against assets valued significantly lower, between $100,001 and $500,000. Under the proposed bankruptcy disclosure, the property would be sold, existing family equity interests would be canceled without recovery unless all claims are paid in full, and the current estate entities would ultimately dissolve.

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The legal challenges have intensified following investigations that revealed critical failures in the camp’s emergency planning and evacuation procedures, leading to ongoing wrongful death lawsuits and intense scrutiny from victims’ families seeking accountability.

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