Posted 8/7/2012 11:30 am
Updated 1 year ago
Jonesboro developer Bruce Burrow filed for Chapter 11 bankruptcy reorganization on July 30, listing between $50 million and $100 million in debts.
The voluntary bankruptcy filing is preliminary and the complete filing is due Aug. 14. Burrow's estimated assets are between $10 million and $50 million, according to the filing.
Arkansas Business contacted Burrow on Tuesday for comment. He had not called back by 11:30 a.m.
The preliminary filing includes Burrow's 20 largest unsecured creditors, which are all banks and have a total of $53.33 million in claims against Burrow, most of which are listed as contingent or disputed.
Liberty Bank of Arkansas has two claims totaling $16.4 million. One of the claims is for $14 million and is tied to a guaranty of Burrow's HLR LLC, which lists as collateral the Hilton Hotel in Little Rock. The value of that hotel is listed at $24 million.
IbieriaBank of Lafayette, La., has three claims against Burrow totaling $10.92 million. One of the claims is for $4.4 million connected to a guaranty of MBC Holdings Worldwide LLC. The collateral on that loan is the Brandon Building in Little Rock, which has a value of about $5.4 million.
MBC Holdings manages about 1.5 million SF of commercial property. Among its the Jonesboro properties under management: The Mall at Turtle Creek, Turtle Crossings and Shoppes at Turtle Creek.
Metropolitan National Bank of Little Rock has a $5 million claim against Burrow for a guaranty of MBC Holdings Worldwide LLC. The collateral on that loan is an office building in Jonesboro worth $5.5 million.
In March, Burrow talked to Arkansas Business about how the recession had clobbered his commercial real estate business, leading to a wave of lenders filing foreclosure lawsuits against him.
"Let me preface anything I say to you: I take full responsibility. I've been here 40 years, and we've developed lots of property," Burrow said in the article. "... When things turned down, I got caught holding too much vacant ground.
"I simply ran out of cash and didn't have it," he said.
Between July 2010 and February 2012, Burrow was hit with four judgments totaling $5.5 million.
(George Waldon contributed to this report.)