Filing: Razorbacks Coach John L. Smith's Bankruptcy Now at $40.7 Million

by Mark Friedman  on Wednesday, Oct. 3, 2012 4:04 pm  

John L. Smith

Razorbacks head football coach John L. Smith has amended his bankruptcy filing Wednesday to show $40.7 million in debt, up from the $25.7 million he showed in his original filing.

The amendment filing in U.S. Bankruptcy Court in the Western District, also shows that he has $1.3 million in assets. Smith's original filing on Sept. 19 reported $1.2 million in assets. has the complete bankruptcy filing here. You can also access the filing here.

The amended document now shows an additional $15 million owed to Branch Banking & Trust in Louisville, Ky. In his earlier filing, Smith listed the debt as "unknown." The debt, which Smith had personally guaranteed, is tied to Terra Springs LLC, a residential real estate investment entity in Louisville, Ky.

"Don't know the exact amount of debt, but is in excess of $15 million," the filing said. "This debt may have been sold to others."

The filing said Smith is disputing this amount.

Wednesday's amended filing also shows that Smith recently cashed in a life insurance policy, stocks and an annuity held with his wife to pay bills.

Smith and his wife cashed an annuity worth $141,715 in August and split the money. The coach used $50,000 of his portion to pay "various obligations," including taxes and attorney fees, according to the filing. He paid $20,000 to the Jacoway Law Firm in Fayetteville to handle his bankruptcy.

Smith and his wife also sold stocks worth $47,276 and divided the money. The bankruptcy filing also showed that Smith cashed in a portion of a life insurance policy worth $11,605 in August.

In his original bankruptcy filing, Smith reported having $300 cash on hand and $500 in his checking account. The amended filing now shows Smith with more than $22,000 in checking.

Creditors holding the biggest unsecured claims against Smith are a trio of Louisville, Ky., entities: Terra Springs, for $20 million; Republic Bank, for $2 million; and King Southern Bank, for $902,000.

He also owes John D. Rhodes of Louisville more than $865,000 after a judgment issued in April.



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