Posted 9/3/2012 12:00 am
Updated 9 months ago
Jonesboro developer Bruce Burrow recently updated his Chapter 11 bankruptcy information, which shows he owes $17.27 million in debts and has $14.1 million in assets.
When Burrow filed for bankruptcy protection last month, he listed his debt as between $50 million and $100 million. At the time he said that his filing made his financial situation look worse than it really was, and his whopping 100-page summary of schedules supports that claim.
Burrow listed $13.47 million in debts secured by assets.
The largest unsecured claim is that of First Arkansas Bank & Trust of Jacksonville for $1.3 million, the deficiency left after foreclosing on a vacant lot in Jonesboro in June. Another large unsecured creditor is Farmers Bank & Trust Co. of Blytheville for $589,943 for a judgment the bank received against Burrow and his Chickasaw Properties LLC.
Most of his assets were pieces of property and included his Jonesboro home, valued at nearly $3 million, and 10.32 acres of a vacant lot in Cabot that’s valued at $3 million. But his wife, Sherry, who is not listed as a debtor on the bankruptcy filing, may claim half of the ownership in the home as they are going through a divorce.
Between 2010 and 2012, Bruce Burrow pawned a number of items and received $166,000. Items pawned included an ivory box, rings and a Rolex watch.
Burrow told Whispers that filing for reorganization “was a business decision I made that was best for me and my investments and for my work.” And he said his creditors would get paid.
Most of those debts listed in the preliminary filing were for personal guarantees he made for the limited liability companies he has an interest in. Those LLCs haven’t filed for bankruptcy, so one of the few ways Burrow would be on the hook for the money is if there were a default and the bank chose the unusual step of not liquidating the property but suing Burrow for the money.
Burrow said last week that the debts were being worked out.
“We’re putting our plan together now, and hopefully we’ll get out of this quicker than later,” he said.