Cowboys Dancehall Loses Lawsuit to Stop Foreclosure

by San Antonio Attorney

A federal judge dismissed a lawsuit in which Cowboys Dancehall alleged that its mortgage lender illegally foreclosed on the nightclub and drove it into Chapter 11 bankruptcy.

Chief U.S.  Bankruptcy Judge Ronald King sided against the Northeast Side establishment which argued that it did not default on its obligations and that mortgage lender EverBank Financial Corp. along with its division Business Property Lending unlawfully hastened the site’s foreclosure, as stated in a court order.

In June, dance hall owner Cowboys Far West Ltd. filed for bankruptcy to protect the property from being foreclosed and took legal action against EverBank and Business Property Lending in July.

Business Property Lending and EverBank asked the bankruptcy judge on Aug. 23 to omit a court trial and put forth a summary judgment in the proceedings, as stated in court filings, asserting that Cowboys obviously did not pay its ad valorem taxes (which means “according to value”) on time, and did not follow all the regulations, laws and ordinances pertinent to property use.

King agreed with EverBank and Business Property Lending and said he would put forth a final judgment soon.

Cowboys Dancehall is a popular venue of country music in Bexar County.  It is one of the most successful concert venues in the area.  Based on its court filing, the establishment has about $10 million in debts to government agencies, auto companies, banks and individuals.

Court documents reveal the establishment’s 2016 yearly income is on course to drop by roughly 40% compare to the past years.  The dance hall generated around $2 million in revenue between January 1 and June 24, with average monthly revenue of $335,596.  In contrast, the establishment generated about $6.7 million last year with average monthly revenue of $554,036 and more than $6 million in 2014, generating about $510,482 per month.

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