Phil Herrington
The trustee for Little Rock developer Philip Herrington has requested that his bankruptcy be converted from reorganization to Chapter 7 liquidation.
“There appears to be very little likelihood that [he] can successfully propose and confirm a plan of reorganization,” Acting U.S. Trustee Daniel Casamatta said in a filing Aug. 25.
If you recall, Herrington filed for Chapter 11 in March and listed $13.45 million in debts and only $5.1 million in assets.
Casamatta said that Herrington failed to hand over copies of his 2013, 2014 and 2015 tax returns, even though he was asked several times to do so.
Also, Herrington was supposed to open a bank account in connection with the bankruptcy case but failed to follow through by providing a voided check from the account, Casamatta said.
Herrington told us last week that the delay on the tax returns had to do with not being able to obtain financial information from the estate of a deceased business partner.
But he received financial documents he needed last week and will “provide all the information requested,” Herrington said. “It’s a move we expected to get from them, and it’s reasonable.”
Herrington told Arkansas Business in July that he believed selling his undeveloped property would solve a number of his financial problems.
Herrington also said in July that a plan for reorganization would be filed soon. But a plan hadn’t been filed as of Thursday.
Herrington told us last week that he expects to submit a plan within the next 10 days “and we’ll go from there.”
If the case isn’t converted to a Chapter 7, Casamatta wants the case dismissed.
A hearing on Casamatta’s motion is set for Oct. 4 in U.S. Bankruptcy Court in Little Rock in front of Judge Ben Barry.
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