Posted 4/15/2013 12:00 am
A creditor of Jonesboro developer Bruce Burrow is demanding that his Chapter 11 bankruptcy reorganization be converted to a Chapter 7 liquidation or tossed out.
“It is clear that the Debtor’s estate is generating insufficient monies to fund, much less complete, any Chapter 11 Plan,” according to the motion filed by Farmers Bank & Trust Co., which has a claim against Burrow for $590,000.
The Blytheville bank’s lawyer pointed out that Burrow was forced in the fall to borrow $13,500 from his wife to help pay for his Chapter 11 bankruptcy.
Burrow “has not been properly managing the estate,” Farmers said.
Burrow’s attorney, Kevin Keech of North Little Rock, disagrees.
“We have no immediate intentions to convert the case to a Chapter 7,” he said. “We fully expect for all of the issues to be resolved.”
A hearing is set for April 30 in front of U.S. Bankruptcy Judge Audrey Evans.
He said Burrow’s and Farmers’ relationship was “a contentious matter before the bankruptcy filing.”
Burrow claimed in his bankruptcy filing that he has a potential claim against Farmers for allegedly misappropriating nearly $750,000.
Farmers’ attorney, Gary Jiles of Conway, couldn’t immediately be reached for comment.
Keech said Burrow’s bankruptcy is making good progress and Burrow has been selling pieces of his property.
“He’s in negotiations with a number of parties [to sell other properties] that I can’t disclose at this point,” Keech said.
Burrow filed his Chapter 11 bankruptcy petition in July and listed total debts of $17.27 million and total assets of $14.1 million.