Judge rejects Andy Krafsur’s letter in Children’s bankruptcy case

A major setback for a former bankruptcy trustee who was trying to get his voice heard in the Children’s Hospital’s bankruptcy case.

ABC-7 reported that Andy Krafsur sent a letter to the judge in the case with concerns about the hospital’s proposed agreement with UMC and the county.

A big problem with the plan, according to Krafsur, is that it writes off $150 million in debt owed to taxpayers, which he says is against the Texas constitution.

County judge Veronica Escobar said the county was not forgiving the debt, but settling with a party that couldn’t pay.

“This is one more strange twist to this most unusual case,” Krafsur wrote on an email Saturday .

“As I see it, this was not an ex-party communication, because ex-party by definition involves improper, one sided communications with the Court from parties to the case. I am not a party to the case, which is the whole point.

I sent the letter to the parties in advance of sending it Court so any response could be included. There were none.

I certainly had an opportunity to become a party to the case, and elected not to for both personal and practical reasons. Despite the Court’s response, I believe that was the right decision.

While I believe my letter raises issues worthy of consideration, alas it is not to be. The remedy, if any, will apparently have to take place at the ballot box,” said Krafsur.

Earlier this week Krafur’s letter was returned by the court. The court informed him the judge can not read it because he is not an official party in the case. Krasfur says he sent his letter to all the parties involved in the case but he never got a response.

He told ABC-7 in a statement, “The only other option would have been to file a formal objection and become a party to the case. That is too heavy a burden for a single concerned citizen. While I will respect the Court’s ruling, I disagree with it, and believe it sets a very dangerous precedent and exposes the taxpayers to extensive and even further liabilities without recourse.”

A hearing to confirm or reject the plan is scheduled for Tuesday.