The Nation - News from April 21, 1988

The trustee in the PTL’s bankruptcy proceedings said he hopes the ministry has reformed itself enough that the Internal Revenue Service will not revoke its tax-exempt status, even though an appeals court paved the way for just such an action. Trustee David Clark made the comment after a hearing in U.S. Bankruptcy Court in Columbia, S.C., during which Judge Rufus Reynolds approved the sale of $3.2 million in PTL property. Earlier in the day, a three-judge panel of the U.S. 4th Circuit Court of Appeals in Richmond, Va., upheld a decision in the IRS’ favor by U.S. District Judge Karen L. Henderson of Columbia. Henderson found that the bankruptcy court did not have the authority to issue a preliminary injunction against the lifting of the ministry’s tax-exempt status.