Schlitterbahn Riverpark is Drowning, Facing Foreclosure

The Schlitterbahn Riverpark & Resort on South Padre Island could be auctioned at a foreclosure sale in February 2018, if a deal for the property isn’t reached before then. However, Axys Capital Credit Fund of Austin received court approval to foreclose on the 270 acres surrounding the park and hotel. The lender paid $9 million for the acreage at a recent Nueces County foreclosure auction.

Meanwhile, IBC Bank, which provided funding for the actual water park and 92-room hotel, made a similar request to foreclose, though agreed to give the bankruptcy trustee more time to find a buyer, or to work out another plan for the property.

The Schlitterbahn Riverpark & Resort was planned as part of a 500-acre development on Padre Island, that would have included residential properties, a marina and a waterfront boardwalk. However, disagreements led the partners into a bankruptcy on May 20.

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