Published: March 14, 2008 04:03 pm         

Mall owner wants to dismiss bankruptcy filing

Partners tentatively agree to split ownership of three mall properties

Two investors — one with a lawsuit against the other — reached a tentative agreement Wednesday to split ownership of three malls, one of which is Nolan River Mall in Cleburne.

Under the agreement, Denis Engel will retain ownership of Nolan River Mall with Tom Morris assuming ownership of Arlington’s Six Flags Mall and Corpus Christi’s Sunrise Mall. The agreement is contingent on Chapter 11 bankruptcy proceedings against Nolan River Mall, filed Feb. 22 in the federal bankruptcy court in Dallas, being dismissed, said Marvin Sprouse, Engel’s attorney.

A business controlled by Morris that owns the mall filed for bankruptcy after Engel sued Morris and entities associated with him, claiming Morris mismanaged Nolan River Mall and other properties. The suit also asked the court to appoint a third party to assume day-to-day operations of Nolan River Mall.

“The debtor [Morris] filed to have the bankruptcy case dismissed,” Sprouse said. “The hearing is March 24. We don’t think there should be any problem with it.”

The mall’s owners owe back taxes of $98,378.64 on Nolan River Mall for 2007, according to records at the Johnson County tax office.

“I don’t know the specifics of that,” Spouse said. “But my client has agreed to satisfy any liens against the property.”

Nolan River Mall remains open.

Morris and Engel could not be reached for comment.

     

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