Camp Mystic Files for Bankruptcy Following Tragic Floods and Lawsuits

Camp Mystic’s owner has filed for Chapter 11 bankruptcy protection, nearly a year after fatal floods in Texas Hill Country. The floods claimed the lives of 25 girls, two teenage counselors, and the camp’s longtime director.

In the court filing, the operators, who run the all-girls Christian summer camp, reported total debts ranging between $10 million and $50 million. Their total assets are listed as being between $1 million and $10 million. The filing took place in the U.S. Bankruptcy Court for the Southern District of Texas, located in Houston.

There has been considerable criticism directed at Camp Mystic’s owners and operators concerning their handling of the July 4th floods from last year. A recent investigative report accused the camp of insufficient emergency planning and management during the storm. The authors of the 115-page report emphasized the importance of learning from these failures to prevent similar tragedies 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.

Responsibility for evacuating the camp reportedly fell to just three individuals: the camp’s co-owner, his son, and a security guard. Tragically, the co-owner, Richard “Dick” Eastland, perished in the flood waters.

In April, Camp Mystic authorities withdrew their application to reopen for the summer. This decision was made shortly after an emotionally charged legislative hearing attended by the families of the deceased girls. The camp expressed acknowledgment of the loss, stating their withdrawal was to respect concerns voiced by grieving families and legislative committees.

Families of the victims have filed a lawsuit, claiming the camp failed to take adequate measures as floodwaters surged near the campgrounds. They are pursuing over $1 million in damages.

Sarah Foss, the global head of legal and restructuring at Debtwire, indicated that the bankruptcy filing temporarily halts these lawsuits. She further explained that victims’ families would be recognized as creditors who can only seek compensation from the limited resources available in the bankruptcy case.

Wednesday’s bankruptcy filing, an eight-page document, was signed by four Eastland family members who own the almost 100-year-old Camp Mystic. While the document does not delve into specifics about the camp’s financial standing, it supports the family’s decision during this challenging time.

Attorney Martin A. Sosland, representing the camp’s debtors, did not provide an immediate response to inquiries about the filing.

Besides the tragedy at Camp Mystic, the floods last July were responsible for at least 136 deaths along the Guadalupe River in Texas. Cecilia “Cile” Steward, an 8-year-old camper, remains missing.