The owner of Camp Mystic sought Chapter 11 bankruptcy protection on Wednesday. This event trails almost a year after devastating floods hit Texas Hill Country. The catastrophic disaster claimed the lives of 25 girls, two teenage counselors, and the camp’s longtime director.
The all-girls Christian summer camp reported debts ranging from $10 million to $50 million in a U.S. Bankruptcy Court filing. In contrast, its assets are between $1 million and $10 million. The filing occurred in the Southern District of Texas, Houston.
Camp Mystic’s management has faced criticism for their handling of last July’s floods. State investigators issued a harsh report earlier this month, citing failures in emergency planning, storm preparation, evacuation, and incident response. The report emphasized that analyzing the camp’s emergency shortcomings could help prevent similar incidents in the future.
“The lessons to be learned from the camp’s inadequate emergency planning and response are worthy of careful study for opportunities to avoid similar future tragedies,” the report’s authors stated.
During the crisis, the evacuation task fell primarily to three personnel: the co-owner, his son, and a security guard. The camp’s co-owner, Richard “Dick” Eastland, tragically perished in the floods.
In April, Camp Mystic officials decided against reopening for the summer. Their decision followed an emotional legislative hearing where the parents of deceased children attended. In a statement, the camp acknowledged the loss of “precious lives.” They emphasized that withdrawing the application was a step to show they had acknowledged concerns raised by grieving families, legislative committees, and the public.
“Respect for those voices requires that we step back now,” camp officials stated.
The victim families initiated lawsuits in November, alleging the camp’s operators did not act appropriately as floodwaters rose. They are seeking damages exceeding $1 million.
Sarah Foss, the global head of legal and restructuring at Debtwire, explained that the bankruptcy filing puts these lawsuits on hold temporarily. She added that whether these cases resume in bankruptcy court or elsewhere, the families will be treated as creditors. This means seeking compensation from a limited bankruptcy pool rather than individual jury verdicts.
“Whether those lawsuits ultimately proceed in the bankruptcy court or the courts where they are pending, victims’ families will be treated as creditors who must seek compensation from a limited pool of money in the bankruptcy case rather than through individual jury verdicts,” Foss stated.
The eight-page bankruptcy document bears the signatures of four Eastland family members, owners of the nearly 100-year-old Camp Mystic. The filing does not expose detailed financial information about the camp. Martin A. Sosland, the debtors’ attorney listed in the filing, has not responded to requests for comment as of Wednesday morning.
Overall, the floods last July claimed at least 136 lives along the Guadalupe River. The fate of Cecilia “Cile” Steward, an 8-year-old Camp Mystic camper, remains uncertain as she is still missing.