Camp Mystic - Chapter 11 Case Summary

Business Description

Camp Mystic (the "Camp") is a private summer camp for girls located near Hunt, in Kerr County, Texas. Founded in 1926, the Camp has operated for approximately one hundred years and has been owned and operated by the same family for approximately 85 years.

• Generations of Texas families have entrusted their daughters to the Camp, which has long held a place of significance for its campers, alumnae, employees, and the surrounding community.

Camp Mystic, LLC and its affiliated debtors (collectively, the "Debtors" or the "Company") filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code on June 24, 2026 (the "Petition Date") in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.

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Corporate History

Camp Mystic was founded in 1926 as a private summer camp for girls on the South Fork of the Guadalupe River, near Hunt in Kerr County, Texas. The Camp has operated near the same location for approximately one hundred years, making 2026 its centennial.

• Richard "Dick" Eastland and Willetta "Tweety" Eastland became involved in the Camp's operations in 1974 and assumed leadership of the Camp in 1987.
• Over the decades, the Camp developed a substantial reputation among Texas families, with multi-generational enrollment and sustained demand.

Organizational Structure

The Debtors comprise four affiliated entities:

• Camp Mystic, LLC ("Camp Mystic LLC"), a Texas limited liability company, which operates the Camp;
• Natural Fountains Properties, Inc. ("NFP"), a Texas corporation, which owns the real property and improvements on which the Camp operates;
• Mystic Camps Family Partnership, Ltd. ("MC Family Partnership"), a Texas limited partnership, which owns 100% of the equity in Camp Mystic, LLC and NFP; and
• Mystic Camps Management, LLC ("MC Management"), a Texas limited liability company, which serves as the sole general partner of MC Family Partnership.

Based on the Debtors' records, Mystic Camps Management, LLC holds the remaining 1% general partner interest in MC Family Partnership, and the other 99% of the equity is owned by its limited partners, consisting of individual members of the Eastland family and Eastland family trusts; 100% of the equity in MC Management is owned by Willette A. "Tweety" Eastland.

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Operations Overview

The Camp operates on an approximately 725-acre property near Hunt, Texas, comprising two campuses:

• The original Camp Mystic Guadalupe River campus, situated along the Guadalupe River, which historically included approximately 40 buildings, including cabins, a dining hall, recreation facilities, and administrative and support structures; and
• The newer Camp Mystic Cypress Lake campus, located on the same property adjacent to Cypress Lake / Cypress Creek and developed in approximately 2019-2020, which includes 15 cabins.

Revenue Model

The Camp's revenue is generated primarily through tuition paid by the families of enrolled campers for seasonal sessions, with families typically paying deposits and tuition in advance of the season.

• For what would have been the 2026 season, the Company's materials reflect tuition of approximately $3,475 per camper per session, with approximately 863 children committed to attend before the 2026 season was cancelled.

Workforce

The Debtors currently maintain a staff of approximately 11 employees, retained to maintain the buildings and grounds and preserve the value of the Debtors' assets pending a determination of the Camp's future.

• In a normal operating season, the workforce also includes seasonal counselors, support staff, and security personnel.

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Prepetition Obligations

Camper Deposits and Prepaid Tuition

As of the Petition Date, the Debtors hold over $1 million in camper deposits and prepaid tuition.

• Because the Camp will not operate in 2026, some camper families have agreed to allow the Debtors to hold these funds and roll them forward to a hoped-for 2027 season, rather than requiring refunds.

Prepetition Litigation

As of the Petition Date, the Debtors are defendants in five lawsuits arising from the July 4, 2025, flood, each pending in the District Court of Travis County, Texas, and consolidated before the 459th Judicial District Court.

• Each of these lawsuits includes causes of action for wrongful death and names Debtors and non-Debtors as defendants.

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Events Leading to Bankruptcy

The July 4, 2025, Flood

On July 4, 2025, a severe and sudden flood struck the Texas Hill Country, including the Guadalupe River valley where the Camp's Guadalupe River campus is located. The flood caused catastrophic loss of life and extensive physical damage to that campus.

• Among those who died were 27 campers and counselors at the Camp, including one who remains missing, as well as the Camp's longtime director and co-owner, Richard "Dick" Eastland.

The Company's Chief Restructuring Officer describes the July 4, 2025, flood solely to explain the circumstances that led to these chapter 11 cases, and offers no opinion or characterization regarding the cause of the flood, whether the event was reasonably foreseeable, or the adequacy of any warning, response, or evacuation. The conduct of the parties and the cause of the losses are disputed and are the subject of the pending litigation and governmental inquiries.

Operational and Financial Impact

The July 4, 2025, flood had a severe impact on the Debtors' operations and finances. The Guadalupe River campus sustained extensive physical damage, and the Debtors' ability to operate and generate revenue was materially impaired.

• In addition, the Debtors have incurred and continue to incur substantial costs, including remediation, professional, legal, and other costs arising from the event and its aftermath.

Regulatory and Governmental Matters

Following the July 4, 2025, flood, the State of Texas enacted legislation addressing youth camp safety. Public reporting indicates that in September 2025 the Governor signed camp-safety legislation (publicly referred to as the "Heaven's 27 Camp Safety Act") that, among other things, restricts the licensing of youth camps with cabins located in certain floodplains or floodways, and imposes emergency-planning, training, and related requirements.

• The flood has also been the subject of governmental and legislative inquiry, and public reporting references an investigation by state authorities.
• In April 2026, the Debtors withdrew their application to the Texas Department of State Health Services for a 2026 summer-camp license, and the Camp will not operate for the 2026 season. The Debtors intend to conduct their operations in compliance with applicable law and licensing requirements.

Liquidity Constraints and Chapter 11 Filing

As a result of the loss of revenue and operational disruption following the July 4, 2025, flood, the costs arising from the event and its aftermath, and the burden and uncertainty of multiple pending and potential lawsuits and governmental inquiries, the Debtors face liquidity constraints that made it necessary to seek relief under chapter 11.

• The Debtors commenced these cases to preserve the value of their business, to provide a single, orderly forum in which claims arising from the July 4, 2025, flood may be addressed, and to protect the interests of the Debtors' employees, campers and their families, creditors, and other stakeholders.

The Debtors' contemplated path forward includes implementing a claims and plan process designed to resolve the prepetition litigation and other claims in a single forum, including through the marshalling of available insurance.

• The Debtors will work in good faith with all stakeholders, including any statutory committee, to establish a procedure that treats claimants fairly through an orderly resolution process and preserves value for the benefit of creditors.

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Second Day Motions

Concurrently with the petitions, the Debtors filed a series of second day motions, which the Chief Restructuring Officer supports as necessary to avoid immediate and irreparable harm to the estates and to preserve asset value:

• Cash Management: Authority to continue using the existing cash management system and business forms, to maintain the Wells Fargo account ending in 2231 (the "Operating Account") as a restyled debtor-in-possession account, to pay outstanding prepetition bank fees, and a temporary waiver of the deposit and bonding requirements of section 345(b) of the Bankruptcy Code pending transition to authorized DIP accounts.
• Extension of Time to File Schedules and Statements: A 45-day extension of the deadline to file the schedules and statements of financial affairs (59 days total from the Petition Date, to August 24, 2026), in part because many financial records were damaged in the July 2025 Kerr County floods and must be reconstructed from electronic sources and third parties.
• Consolidated Creditor List and Redaction: Authority to file a single consolidated creditor matrix and consolidated list of the largest unsecured creditors (expected to include more than 30 creditors), to redact personally identifiable and sensitive information (citing privacy risks and potential obligations under the EU General Data Protection Regulation), and to approve the proposed form and manner of notice.
• Utilities: An order barring utility providers from discontinuing service on account of the filing, approving a proposed adequate-assurance cash deposit of approximately $2,380.32, authorizing payment of approximately $2,116.00 in prepetition utility obligations, and establishing procedures to resolve assurance disputes.
• Retention of Claims and Noticing Agent: Authority to retain Epiq Corporate Restructuring, LLC as claims, noticing, and solicitation agent, compensated in the ordinary course under the parties' engagement letter, including a $25,000 retainer.