Camp Mystic Files Chapter 11 as Flood Families Challenge Eastland Stay

Camp Mystic, LLC and three affiliated entities filed chapter 11 petitions on June 24, 2026 in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, under lead case No. 26-90621, before Judge Christopher M. Lopez — nearly a year after a Guadalupe River flood at the century-old girls' camp killed 27 campers and counselors and the camp's longtime director, Richard "Dick" Eastland. The case groups Camp Mystic, LLC with its real-estate affiliate Natural Fountains Properties, Inc. and two Eastland-family management entities, Mystic Camps Management, LLC and Mystic Camps Family Partnership, Ltd., under procedural joint administration.

The filing follows the camp's withdrawal of its 2026 summer-camp license application and the cancellation of that season, and it seeks a single forum to address wrongful-death claims tied to the flood alongside available insurance. No plan, disclosure statement, or DIP facility has been filed. An official committee of unsecured creditors is now in place, and a group of victims' families is separately seeking to preserve direct claims against non-debtor members of the Eastland family.

Debtor(s)	Camp Mystic, LLC (4 jointly administered entities)
Court	U.S. Bankruptcy Court, Southern District of Texas (Houston Division)
Case Number	26-90621
Petition Date	June 24, 2026
Judge	Hon. Christopher M. Lopez

Open the public case profile for docket context, hearings, advisors, and plan updates.

The Guadalupe River Flood and License Withdrawal

Camp Mystic was built in 1926 near Hunt in Kerr County, Texas, and operates on a roughly 725-acre property split between a Guadalupe River campus and a Cypress Lake campus. The declaration of Karen Nicolaou, the debtors' proposed chief restructuring officer, describes extensive damage to the Guadalupe River campus from the July 4, 2025 flood, followed by wrongful-death litigation, regulatory scrutiny, operational disruption, and liquidity pressure. A Reuters investigation found the camp had no written evacuation plan in place on the night of the flood, and the Texas Legislature's final investigative report on the disaster was released the week before the filing.

In September 2025, Texas enacted the Heaven's 27 Camp Safety Act, increasing state licensing scrutiny of youth camps. The debtors withdrew their 2026 summer-camp license application from the Texas Department of State Health Services in April 2026, cancelling that season. Before the cancellation, approximately 863 children had been committed to attend, and the debtors held more than $1 million in prepaid tuition and camper deposits as of the petition date — a portion of which is being carried forward as rolled-over deposits toward a possible 2027 season. The debtors retained roughly 11 employees post-petition to maintain the property and preserve its value.

Cash Management, Wage Relief, and No DIP Financing

The debtors did not seek debtor-in-possession financing. Instead, they asked to continue using their existing banking relationships — accounts at Wells Fargo, Broadway National Bank, Fidelity Bank, Texas Partners Bank, and Security State Bank and Trust — while transitioning to new accounts. The court's interim and later final cash management order, entered July 22, 2026, authorized the debtors to close eight of their prepetition accounts and move those funds to new accounts at Axos, while keeping the Wells Fargo operating account open with a minimal balance below the FDIC insurance limit to avoid disrupting payroll and merchant processing. The order extended the debtors' deadline to comply with the cash-deposit requirements of Bankruptcy Code section 345(b) to August 1, 2026, and requires weekly itemized cash-expenditure reporting to counsel for the Ad Hoc Group, counsel for creditors John and Lacy Lawrence, and the U.S. Trustee.

On the wage side, the court authorized payment of approximately $40,754 in prepetition wages, salaries, and benefits covering the June 1–23, 2026 payroll period, along with continuing monthly obligations of roughly $1,292 for insurance allowances, $2,372 for health insurance premiums, and $660 for retirement contributions. A separate tax motion covered approximately $61,107 in outstanding taxes and fees, the bulk of it $60,448 in property taxes tied to the camp's real estate. An insurance motion sought authority to continue coverage under policies with Texas Mutual Insurance Company, New Hampshire Insurance Company, and Granite State Insurance Company, placed through broker Hertel Insurers Group, representing approximately $156,391 in total annual premiums with deductibles generally between $500 and $10,000 (5%, with a $10,000 minimum, for windstorm or hail damage); the debtors filed a certificate of no objection on the motion on July 24, 2026. A related utility motion proposed roughly $2,380 in adequate-assurance deposits against about $2,116 in prepetition utility obligations; the court approved that relief on July 14, 2026.

Automatic-Stay Dispute Over Eastland Claims

On July 13, 2026, the Ad Hoc Group of Certain Heaven's 27 Families — 24 named families of flood victims — moved for an order confirming that the chapter 11 automatic stay does not bar their direct wrongful-death claims against non-debtor individuals: Willetta Eastland, who owns 100% of debtor Mystic Camps Management, LLC; George Albritton Eastland, as personal representative of the estate of Richard "Dick" Eastland; Edward S. Eastland; Mary E. Eastland; and William Neely Bonner III. The group argues those direct claims are not property of the bankruptcy estate and that pursuing them would not violate the stay. The families argue the chapter 11 stay was never meant to shield individual owners and executives from personal liability; as of July 24, 2026, the docket does not show a ruling on the motion.

The dispute sits alongside five wrongful-death lawsuits pending before the 459th Judicial District Court in Travis County, Texas, naming both the debtors and non-debtor individuals. In July, Camp Mystic's owners removed one of those suits to federal court, arguing it is connected to the chapter 11 case; counsel for the six families in that suit said they plan to ask the federal court to send it back to state court. The CRO's declaration frames the debtors' preferred path as a claims-and-plan process that would route the litigation through a single forum, including available insurance — a stated objective rather than a filed or confirmed plan.

Creditors' Committee, Epiq, and Claims Administration

The U.S. Trustee appointed an official committee of unsecured creditors on July 22, 2026. Public reporting identifies its members as parents of children who died in the flood, who will represent unsecured creditors generally while the wrongful-death litigation remains paused by the stay. The court separately authorized the retention of Epiq Corporate Restructuring, LLC as claims, noticing, and solicitation agent on July 9, 2026, with a $25,000 retainer.

The debtors' list of the 30 largest unsecured creditors withholds claimant names and addresses from the public docket given the wrongful-death context, but it shows the composition of the unsecured creditor pool: 30 tuition-deposit claims, most for $3,684 each, and 22 tort claims listed in unknown amounts, across 52 total entries. No claims bar date had been set as of July 24, 2026.

Key Timeline

Date	Event
July 4, 2025	Guadalupe River flood kills 27 campers and counselors, including director Richard Eastland
June 24, 2026	Camp Mystic, LLC and three affiliates file chapter 11 petitions
June 29, 2026	Court grants procedural joint administration and complex-case designation
July 2, 2026	Debtors file second-day motions (cash management, insurance, taxes, utilities, Epiq retention) and the CRO declaration
July 9, 2026	Court authorizes Epiq's retention as claims and noticing agent
July 13, 2026	Ad Hoc Group moves for a ruling that the stay does not cover direct claims against named Eastland-family individuals
July 14, 2026	Court enters interim cash management and utility adequate-assurance orders
July 22, 2026	U.S. Trustee appoints unsecured creditors' committee; court enters final cash management order
July 24, 2026	Certificates of no objection filed for the tax and insurance motions

Frequently Asked Questions

Who is the claims agent for Camp Mystic?

Epiq Corporate Restructuring, LLC serves as claims, noticing, and solicitation agent under the court's July 9, 2026 retention order, which set a $25,000 retainer. No claims bar date had been entered as of July 24, 2026.

Did Camp Mystic obtain debtor-in-possession financing?

No. The debtors sought only continued use of their existing cash management system rather than a DIP facility, closing eight prepetition bank accounts and moving those funds to new accounts at Axos while keeping a minimal Wells Fargo operating balance in place.

Does the automatic stay protect the Eastland family from the wrongful-death lawsuits?

That question is contested. The Ad Hoc Group of Certain Heaven's 27 Families filed a motion on July 13, 2026 seeking confirmation that the stay does not extend to their direct claims against named non-debtor Eastland-family individuals; as of July 24, 2026, the docket does not show a ruling.

What court is hearing the Camp Mystic bankruptcy?

The case is pending before Judge Christopher M. Lopez in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, under lead case No. 26-90621.

Other mass-tort and camp-adjacent chapter 11 cases include SIMAD Holdings' bond default across 29 camps, Glenwood Caverns' filing after a $119.8 million wrongful-death judgment, and the Diocese of Burlington's consolidation of clergy-abuse claims.