Popular Venue Seeks To Delay Its Final Dance With Court Appeal
The drama continue for Cowboys Dancehall. The owners of the popular venue are appealing a court ruling that its lenders didn't wrongfully foreclose on the operation. The partnership that owns the nightclub, Cowboys Far West, contested the decision in an appeal filed Dec. 7.
The lawsuit centers around Cowboys' claim it didn't default on mortgage payments and that Business Property Lending "wrongfully" foreclosed on the venue. Business Property Lenders had placed Cowboys on the market back in June, but the owners declared Chapter 11 to avoid the sale.
Court documents show Cowboys owes $3.9M towards a $5M note owned by Business Property Lenders. Cowboys also owes $2.1M on a second mortgage made through a Houston community developer and about $66k to National Loan Investors on a $100k certificate of deposit in Oklahoma City, which was taken out to settle an employment lawsuit, reports the San Antonio Express-News.
The problems don't end there. An investigation by the Express-News found that Cowboys Dancehall has been associated with 56 DWI charges over the past 12 months in addition to being associated with 297 drunk driving charges between 2013 and 2015, by far the most in both studies.
Court bankruptcy documents show Cowboys owes its creditors about $10M. Business Property Lending is trying to force the venue to sell its land, building, inventory, sound and lighting equipment, and vehicles to pay back its debt. The club’s owners argue the building and land, valued at $5.3M earlier this year, are worth $10M. If the appeal is denied, it'll be the curtain call for Cowboys Dancehall. [SAEN]
