A federal bankruptcy judge has dealt a major setback to the owners of the Whitewater Amphitheater, ruling that the landmark New Braunfels music venue cannot be sold free of long-standing deed restrictions. The legal decision threatens to significantly depress the venue's valuation as it heads toward a court-ordered auction later this month.
In a comprehensive 27-page opinion, U.S. Bankruptcy Judge Aubrey Thomas denied a motion by venue owner Kona Coast Venture Ltd. that sought authorization to auction the real estate unencumbered by restrictive covenants. The court's decision effectively preserves rules that strictly limit when and how the outdoor venue can host live music events.
The financial ramifications of the ruling are immediate and substantial. Bidding dynamics already reflect the deep divide between the property's value with and without operating limits. Central Texas businessman Micah Bowen has placed a conditional offer on the amphitheater, offering $13 million if the property is cleared of all operating limits, but only $10 million if the restrictions remain in force.
The contested deed covenants impose tight operational boundaries on the popular riverside venue. Under the rules, live performances are generally restricted to Saturday nights during the peak summer window running from May through August. While exceptions allow for additional performances over Memorial Day, Fourth of July, and Labor Day holiday weekends, non-holiday weekday and Sunday shows are barred, and all amplified sound must conclude strictly by 11:30 p.m.
Kona Coast turned to federal bankruptcy court in July as an emergency measure to halt an impending foreclosure initiated by its primary lender. As part of the restructuring strategy, the debtor hoped to utilize the bankruptcy process to strip away the restrictive covenants, calculating that an unencumbered amphitheater capable of operating year-round would draw much more aggressive bidding at auction.
To justify eliminating the covenants, Kona Coast manager Will Korioth testified during an evidentiary hearing that the amphitheater had routinely and openly flouted the operating terms for years. Management argued that because the venue had staged numerous performances on prohibited evenings without effective enforcement, the covenants had effectively been abandoned and were no longer legally enforceable.
However, the effort faced fierce resistance from neighboring property owner SUN NG Whitewater RV LLC, the operating entity behind Camp Fimfo, an adjacent multi-million-dollar camping and RV resort. SUN NG asserted that it retains direct legal rights under the recorded deed restrictions and insisted they must remain tied to the title of the amphitheater property regardless of any ownership transfer.
During the hearing, SUN NG manager Zachary Bossenbroek testified regarding the high commercial stakes involved for the neighboring resort. Bossenbroek explained that more than $100 million has been invested into developing Camp Fimfo, emphasizing that the venture relies heavily on the deed restrictions to preserve the tranquility, attractiveness, and overall property value of the resort. He warned that permitting the amphitheater to stage loud concerts every night of the year would severely undermine that massive investment.
Judge Thomas ultimately found Kona Coast's arguments unpersuasive under governing legal standards. In her opinion, the judge highlighted that while the debtor showed clear evidence of repeatedly violating the operational calendar, past noncompliance by itself does not satisfy the high bar required by Texas state law to establish legal abandonment of property covenants.
The bankruptcy ruling does not permanently resolve whether the restrictions are valid, leaving that broader determination for another venue. Prior to the bankruptcy filing, Kona Coast had filed a lawsuit in Comal County District Court against SUN NG and noteholder MAV WTW Holdings LLC, petitioning the state court to declare the deed covenants invalid and unenforceable.
Instead of issuing a final judgment on the covenants' ultimate legality, Judge Thomas determined that maintaining the status quo was the only equitable path to safeguard SUN NG's rights while the dispute winds through the legal system. As a result, the bankruptcy court ruled that any forthcoming sale must remain explicitly conditioned upon and subject to the restrictions until the ongoing litigation or a settlement concludes.
The judge made clear that this structure leaves any prospective purchaser with the responsibility of charting a path forward. The eventual high bidder will be forced to choose between continuing the costly fight in state court or negotiating a direct settlement and compromise with SUN NG.
Following the issuance of the opinion, Bossenbroek expressed satisfaction with the court's findings, stating in an email that the protections for Camp Fimfo remain fully operative and that any buyer acquiring the amphitheater will have to take the property subject to those ongoing limits. Representatives for Kona Coast, including Korioth and the debtor's bankruptcy counsel, did not immediately provide comment on the ruling.
The clock is now ticking rapidly for prospective buyers interested in acquiring the Hill Country venue and its surrounding land. Formal bids for the property are due by September 22, with the bankruptcy auction scheduled to take place on September 28.
Under the court-approved timeline, the winning bidder must complete and close the purchase no later than October 22. If the transaction fails to finalize by that deadline, lender MAV WTW Holdings will be cleared to move forward with a foreclosure sale on November 3, bringing the long-running battle over the amphitheater to a definitive conclusion.
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