No Auction in Golden Bankruptcy; FDIC Judgment Gone

No Auction in Golden Bankruptcy; FDIC Judgment Gone
Lex Golden

As it stands now, there will be no auction of assets owned by fallen banker Lex Golden and his wife, Ellen.

A proposed settlement is under judicial review to tie up loose ends of the Little Rock couple’s Chapter 7 bankruptcy.

The bankruptcy trustee, Randy Rice, has agreed to release claims on any household goods, furnishings, jewelry and the Goldens’ wine collection in exchange for $8,500 now held on deposit.

Among the Golden assets still in play are:

► 392,849 shares in Allcorp Inc., holding company of the smallest bank in Arkansas: Community State Bank of Bradley. Allcorp remains in bankruptcy court after filing Chapter 11 bankruptcy in July 2016.

► 87,122 shares of Allcorp forfeited to Lex Golden by his daughter, Amy, and son, Alex, as trustees of their respective children’s trusts. The forfeiture followed the settlement of a lawsuit over two delinquent $187,454 promissory notes owed by the trusts and guaranteed by Golden. The debt was owed to the former Allied Bank president, John Hunter.

The Allcorp stock secures a $1.2 million loan from the now-defunct Heartland Bank of Little Rock. That loan is now held by Simmons Bank of Pine Bluff, which took over debt-laden Heartland last August.

Riverside Bank of Sparkman also has two loans totaling more than $527,000 secured by the Allcorp stock owned by Lex and Alex Golden.

Filed a year ago, the bankruptcy petition of Lex and Ellen Golden listed total assets of $1.9 million and total liabilities of $7.7 million. Most of that debt, $4.2 million, was owed to unsecured creditors.

Judgment Satisfied
Remember that $899,677 judgment held by the Federal Deposit Insurance Corp. against Alex Golden, former CEO of Allied Bank?

You know, the one we first told you about more than three years ago.

Well, it is no more.

Earlier this month, that judgment was satisfied.

But the creditor who filed that legal paperwork wasn’t the FDIC. It was Republic Credit One Ltd. of Dallas.

The FDIC assigned its interest in the judgment to the limited partnership in May.

The FDIC and Republic Credit One appear to be related: Jerry Britt, attorney-in-fact for the FDIC, also is managing director of Republic Credit’s general partner: Republic Credit Corp.

The judgment against Golden was handed down in Atlanta U.S. District Court in connection with debt owed to Silverton Bank of Atlanta.

That bad loan fell under the stewardship of the FDIC, as receiver of the $4.1 billion-asset Silverton, closed by the Office of the Comptroller of the Currency on May 1, 2009.

The Silverton loan was tied to a purchase of stock in the Golden family’s Acme Holding Co., holding company for now defunct-Allied Bank.