Last week Arkansas Business told you about a developer who was pushed into involuntary bankruptcy with at least $120 million worth of debt.
That was off by $50 million.
On Tuesday, Gary Russell Gibbs of Niceville, Florida, finally listed his complete financial details in U.S. Bankruptcy Court in Hot Springs. The filing reported total debts at $171.1 million. That makes his personal bankruptcy one of the largest filed in U.S. Bankruptcy Court in Arkansas.
Gibbs, who developed the Delta Resort & Spa in Desha County and the Hotel Hot Springs & Spa, reported just $1.6 million in assets. Both of those projects are being operated by a receiver.
Most of the debts are tied to companies Gibbs operated and whose loans Gibbs had personally guaranteed.
The largest debt listed is $119 million and is owed to SBN V FNBC LLC, an affiliate of Summit Investment Management LLC of Denver, an investment company that buys distressed loans. (Gibbs said in the filing that $34.2 million owed to another creditor may be the same debt owed to SBN. If so, that would lower Gibbs’ total debt to $136.9 million.)
If you recall, Gibbs and his business entities were able to get loans and refinance loans from First NBC Bank in New Orleans. That bank failed in 2017 and the Federal Deposit Insurance Corp. was appointed receiver.
SBN paid the FDIC about $114 million for a pool of about $500 million of First NBC’s loans. Gibbs and his companies’ loans were in that pool.
But Gibbs also listed First NBC Bank as a creditor to whom he owes $3.8 million for a personal guarantee linked to Coon Bayou LLC, a company he formed in 2009 to acquire part of the Desha County land that was used for the Delta Resort & Spa.
He listed more than 100 creditors in the filing, which comes in at 424 pages. Most of the creditors are owed less than $1,000.
Gibbs reported “unknown” for his gross income last year. In 2017, he had a gross income of $85,000. In 2016, it was just $1.
In 2017, Gibbs and his wife, Shareen, sold their home in Brentwood, Tennessee, for $1.7 million, using the $435,000 in proceeds from the sale for business and living expenses.
Gibbs’ bankruptcy attorney is Kevin Keech of Little Rock, who has been paid $60,000.
Gibbs didn’t return a call for comment.