The lack of address that the issue has received is becoming more and more glaring, employees say, Even former LMC president Dr. Miles McCall — who many see as the chief architect of the Lon Morris bankruptcy misery — just negotiated a $10,000 settlement from LMC.
Dr. McCall has been accused of illegally liquidating an endowment fund earmarked for Sam Houston State University. He is being sued by both the Texas Attorney General's Office and by SHSU officials — under the guidance of the AG's office.
McCall, for unspecified reasons, came forward after the liquidation plan had been approved with a $155,000 claim for back wages and an alleged loan he made to LMC. But he agreed to accept $10,000 and relinquish the remainder and formally recognizing it as a “charitable contribution” to the LMC estate, according to paperwork filed in bankruptcy court by Ragan in her new capacity as LMC's Plan Agent.
Other LMC-related money moving agreements this week included Judge Parker approving the estate's proposed sale of over $1 million in mineral rights to a group of purchasers — proceeds that will immediately be used to pay back LMC's debt to Texas National Bank.
“After payment of $1,050,000 to the Bank and escrow of $25,000 as required by the compromise between the Agent and the Bank, the transfer of each of the Mineral Rights to the Purchaser will be as of the closing date a legal, valid, and effective transfer of such assets,” Parker wrote.
As authorized by the judge, Ragan is now free to sell the mineral rights to the party the judge designated as the “winning bidder,” LM Royalty Partners or an affiliate. Alternatively, the judge specified as the “backup bidder” an unnamed general partnership or its affiliate.
Parker contends the sale documents executed by the purchaser and the agent constitute the highest and best offer for the mineral rights, and will provide a greater recovery for the Debtor’s estate than would be provided by any other available alternative.