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Golden Bankruptcy Reveals Allcorp Deal

3 min read

A possible bank stock sale and details of a legal settlement are part of the bankruptcy narrative in the 66-page Chapter 7 filed by Lex and Ellen Golden of Little Rock.

The Feb. 27 petition, which lists total assets of $1.9 million and total liabilities of $7.7 million, alludes to a Jan. 27 stock purchase agreement for Lex Golden’s 39 percent stake in Allcorp Inc.

Golden, chairman of Allcorp, took the bank holding company into Chapter 11 bankruptcy in July. Allcorp owns the $15.2 million-asset Community State Bank of Bradley, the smallest bank in Arkansas.

The would-be buyers of his Allcorp stock are listed as three Dallas trusts associated with Eric Donnelly, chief financial officer of Capital Plus; Chad Vose, president of Harbor Portfolio Advisors; and Farzana Giga, CFO of HPA.

The Allcorp bankruptcy contains no mention of the proposed deal, and the Goldens’ Chapter 7 provides no details.

Allcorp’s Chapter 11 was sandwiched between the April 2014 bankruptcy of another Golden bank holding company, Acme Holding Co., and the regulatory takeover and sale in September of its only significant asset, Allied Bank of Mulberry.

The Goldens’ Chapter 7 filing also contains information on a financial settlement with a former president of Allied Bank, John Hunter.

In October 2015, Hunter sued Golden, chairman and CEO of Acme, along with two trusts established for the benefit of Golden’s grandchildren. At issue were two delinquent $187,454 promissory notes owed by the trusts and guaranteed by Golden.

The notes were linked with Hunter selling his stake in Acme to the trusts in December 2011.

In May, Hunter received a combination of cash and property to settle the dispute: Allcorp shares worth $80,000 that belonged to a Golden grandchildren’s trust held in the name of Amy McCay Children’s Trust, a house on 17.8 acres in Franklin County and $10,000.

Ten Biggest Golden Debts

Chambers Bank, Danville
$2 million secured

Owed on a Yell County Circuit Court judgment against the Goldens in July from their personal guarantees on a 2010 loan to help recapitalize Acme Holding Co., the bankrupt holding company of Allied Bank. The debt is secured by a $5 million Sun Life Financial life insurance policy on Lex Golden with annual premiums of $63,645.

QF Holdings LLC
$2 million unsecured

QF Holdings LLC, led by Walter Quinn, a leading stockholder in Heartland Bank of Little Rock. Debt guaranteed by Lex Golden on a loan to Acme Holding Co., the insolvent holding company of Allied Bank. The $66.3 million-asset bank was taken over by regulators on Sept. 24 and sold to Today’s Bank of Huntsville with a negative bid of $6.1 million.

C-Holdings LLC, affiliate of Chambers Bank
$1.5 million unsecured

Debt purchased by C-Holdings, a loan from Southern Bank of Batesville to Acme Holding Co. guaranteed by Lex Golden.

U.S. Bank, Cincinnati
$719,933 secured

A first mortgage claim on the Goldens’ 4,600-SF home near the Country Club of Little Rock.

Estate of Gene Lewellen Sr.
$286,272 unsecured

Debt owed on the asset purchase agreement of Terry’s Finer Foods in January 2009.

Riverside Bank, Sparkman
$271,282 secured

Debt from an October 2016 loan of $355,528 guaranteed by the Goldens and secured by his 39 percent stake in Allcorp Inc., parent company of Community State Bank of Bradley. Lex Golden is chairman of Allcorp.

Riverside Bank, Sparkman
$255,775 secured

Debt secured by a 39 percent stake in Allcorp, which is in Chapter 11 bankruptcy. The stock is owned by their son, Alex, president of Allcorp.

Riverside Bank, Sparkman
$208,714 partially secured

Debt from a January 2015 second mortgage on the Goldens’ Little Rock home.

Citi Cards, The Lakes, Nevada
$111,736 unsecured

Debt owed by Lex Golden for the purchase of “business goods/services.”

Everest Business Funding, New York
$109,765 unsecured

Debt owed on a Dec. 27, 2016, loan to Ellen Golden for Terry’s Finer Foods.

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