LUBBOCK, Texas (KCBD) - A bankruptcy meeting involving parties from the Lubbock Square Apartments and EFM Transfer Agent LLC took place Tuesday afternoon.

EFM Transfer became involved with Lubbock Square in 2022, when it was assigned all of the property's rights, title, and interests, meaning it is entitled to receive all money due under its terms.

Lubbock Square foreclosed just before 11:00 a.m. on Dec. 3. Bankruptcy was filed two hours later.

The complex's attorney, Joyce Lindauer, challenged the foreclosure, which valued the apartments at $7 million. She claims there had been appraisals valuing $11-$12 million.

EFM's attorney, Andy Stewart, claims there's no evidence of that market value being that high and stated Bo Fontana, the individual owner of Lubbock Square, bought it on Sept. 20 for roughly $7.5 million.

EFM claims the bankruptcy filing is to make the legal battle between them longer, delaying the reclaiming of assets.

A member of the U.S. Board of Trustees was also present in Tuesday's meeting, saying Fontana had never provided proof of insurance.

Lindauer responded saying they have proof but admitted to never seeing it herself. Stewart claims EFM has never seen proof of insurance as well.

Meanwhile, EFM has provided insurance and notes Lubbock Square hadn't paid its trash bill in four months. EFM paid that bill shortly before our report about Lubbock Square's trash issue aired on Monday.

Judge Robert Jones was initially going to schedule another hearing for Dec. 18 in order to get creditors lined up.

Lindauer stated she could not make that hearing, nor the other proposed date of this Friday.

Judge Jones then made the decision to grant a relief from stay. This means EFM can take necessary action to seize Lubbock Square by 5 P.M. on Friday.

Fontana and Lubbock Square must also provide a list of bank accounts and amounts by that same time and must provide proof of insurance by Wednesday.

Another bankruptcy hearing will also take place on Dec. 18 to clear any other issues.