IBC executives say the bank delayed the auction, and is instead allowing a private commercial real estate company to market and try to sell the water park over the next two months.
CORPUS CHRISTI -
The future of the Schlitterbahn water park and hotel is still uncertain, after a public auction of the park was canceled at the last minute.
After months of financial troubles, the water park and hotel are in foreclosure. An auction of that property was supposed to take place at the Nueces County Courthouse today.
Executives for International Bank of Commerce, the bank that foreclosed on the water park, tell KRIS 6 News they exercised their right to stay today's auction. Executive Mike Applegate and IBC's attorney Mike Colvard say the auction was scheduled to happen between noon and 3 p.m. today, but the bank decided to cancel it at 1 this afternoon.
One potential buyer and and a small group of Corpus Christi residents had gathered at the courthouse for the auction.
IBC executives say canceling it was a business decision.
Instead of auctioning off the water park and hotel today, the bank is allowing a private commercial real estate company based out of New York to market and sell the property. The water park is now listed on the website for Keen Summit Capital Partners.
That company was hired by a bankruptcy trustee Dawn Ragan, who was appointed to represent Upper Padre Partners. They are the partners who borrowed more than $30 million dollars from IBC to build the water park and hotel, but then missed several payments on that loan.
The sales process is underway. Ragan says it is expected to wrap up in 45 to 60 days.
However, the bank still has the ability to auction off the park at any time.
IBC executives tell KRIS 6 they could additionally foreclose on the nearby golf course and surrounding land. They would do that if they feel Upper Padre Partners have not made progress on their debt by May 1st.
As of now, Schlitterbahn is still operational. The resort will be open for spring break, and the water park will open for the summer season on April 28th.
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