A federal bankruptcy judge has dealt a major blow to the ownership of Whitewater Amphitheater, ruling that the popular New Braunfels music venue cannot be sold free and clear of contentious deed restrictions during an upcoming court auction. The legal decision maintains stringent operating limits on the outdoor Hill Country property, a development that is anticipated to significantly reduce the final sale price when the venue hits the auction block later this month.
The direct financial consequences of the ruling were underscored by initial purchase interest already submitted for the property. Central Texas businessman Micah Bowen has placed a structured offer for the site, valuing the amphitheater at $13 million if the deed covenants were stripped away, but reducing his bid to $10 million with the operating restrictions left in place. The court's refusal to remove the encumbrances essentially solidifies this potential $3 million markdown for prospective buyers.
The amphitheater's operating entity, Kona Coast Venture Ltd., had sought chapter bankruptcy protection in July in an effort to halt an impending foreclosure initiated by its lender, MAV WTW Holdings LLC. As part of the bankruptcy proceedings, the debtor petitioned the court to extinguish the restrictive covenants, hoping that an unencumbered title would generate much higher offers from investors and concert promoters during the court-supervised liquidation process.
In a comprehensive 27-page opinion, U.S. Bankruptcy Judge Aubrey Thomas formally denied Kona Coast’s motion. Judge Thomas concluded that the bankruptcy process could not be utilized to unilaterally extinguish the longstanding property covenants without proper resolution of the underlying property rights, leaving the existing land-use framework intact for any successor owner.
The deed covenants in dispute impose strict constraints on when and how Whitewater Amphitheater can host live performances. Under these terms, live events at the New Braunfels outdoor venue are largely confined to Saturday evenings spanning the summer season from May through August. Beyond those dates, concerts are permitted only on select holiday weekends, specifically Memorial Day, the Fourth of July, and Labor Day. In addition to calendar restrictions, the rules strictly dictate noise management, mandating that all amplified sound must cease by 11:30 p.m.
During court proceedings, Kona Coast attempted to establish that these operational limits should no longer carry legal weight. Will Korioth, the manager of Kona Coast, testified at a recent hearing that the amphitheater had routinely and extensively staged musical performances on days other than Saturdays. Korioth argued that because the venue had continually breached the covenants over time, the restrictions had effectively been abandoned and were therefore legally unenforceable.
Judge Thomas firmly rejected that rationale under state property jurisprudence. In her written ruling, the judge determined that past infractions by the debtor do not fulfill the rigorous legal criteria required under Texas law to establish that a covenant has been completely abandoned. She noted that simply demonstrating frequent non-compliance by hosting off-schedule concerts does not meet the threshold necessary to strip a neighboring property owner of their recorded land protections.
The principal opposition to lifting the deed restrictions came from SUN NG Whitewater RV LLC, the entity that owns and operates the adjacent Camp Fimfo outdoor camping and RV resort. SUN NG asserted that it retains clear legal rights under the original restrictive covenants and formally demanded that the protections remain attached to the amphitheater's deed in the event of any bankruptcy transfer.
The financial stakes for the neighboring resort were highlighted in testimony by SUN NG manager Zachary Bossenbroek. He testified that more than $100 million has been invested into developing and operating Camp Fimfo. Bossenbroek warned the court that allowing Whitewater Amphitheater to operate unrestricted as a 365-day-a-year concert venue would severely compromise the overall attractiveness, peaceful environment, and commercial valuation of the multimillion-dollar hospitality resort.
The bankruptcy dispute is the latest chapter in ongoing legal maneuvering between the neighboring Hill Country properties. In April, Kona Coast initiated a lawsuit in Comal County District Court against both SUN NG and lender MAV WTW Holdings, seeking a state judicial declaration that the restrictive covenants were unenforceable.
In her bankruptcy ruling, Judge Thomas declined to rule on the ultimate enforceability or validity of the covenants, emphasizing that the state court proceeding or a similar action remains the appropriate venue for that determination. Instead, the judge ordered that any bankruptcy sale of the venue must be explicitly conditioned upon resolving the validity and enforcement of the restrictions through either the ongoing lawsuit or an independent settlement.
Judge Thomas explained that maintaining the status quo was the sole method to ensure SUN NG’s property interests remain adequately protected while the broader legal fight plays out. As a consequence of the decision, the ultimate purchaser of Whitewater Amphitheater will inherit the burden of determining whether to continue litigating the Comal County lawsuit or negotiate an agreement directly with SUN NG.
Following the issuance of the opinion, Bossenbroek expressed satisfaction with the court's refusal to grant Kona Coast’s motion, confirming via email that any forthcoming sale of the amphitheater will proceed subject to the existing land restrictions. Neither Korioth nor bankruptcy counsel representing Kona Coast immediately provided comment regarding the ruling.
The focus now shifts to a compressed schedule of bankruptcy deadlines. Prospective bidders looking to acquire Whitewater Amphitheater and its surrounding acreage must submit formal bids by Sept. 22 ahead of the scheduled auction on Sept. 28. The winning bidder will be required to finalize and close the transaction by Oct. 22. If a sale is not consummated by that date, lender MAV WTW Holdings will be cleared to proceed with foreclosure on Nov. 3.
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