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Lex Golden Lists Nearly $8 Million in Liabilities in Bankruptcy Filing

2 min read

Did you know that Lex Golden, the Little Rock banker who once controlled two Arkansas financial institutions, recently filed Chapter 7 bankruptcy?

The joint filing by Golden and his wife, Ellen, lists total assets of $1.9 million and total liabilities of $7.7 million. Most of that debt, $4.2 million, is owed to unsecured creditors.

The biggest secured claim is held by Chambers Bank of Danville, more than $2 million owed on a Yell County Circuit Court judgment against the Goldens back in July.

The Goldens guaranteed repayment of a $2 million loan in 2010 to help re-capitalize Acme Holding Co., the bankrupt holding company of Allied Bank.

You might remember that 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.

The Chambers debt is secured by a $5 million Sun Life Financial life insurance policy on Lex Golden with annual premiums of $63,645.

The second-biggest secured claim is held by U.S. Bank of Cincinnati, $719,933 tied to a first mortgage on the Golden’s home near the Country Club of Little Rock.

Unsecured Debt & More

The largest unsecured creditor listed is QF Holdings LLC, led by Walter Quinn: $2 million. The Goldens personally guaranteed the debt linked with their failed banking ventures, which includes Allcorp Inc.

Allcorp, the parent company of Community State Bank of Bradley, filed for Chapter 11 bankruptcy in July. Community State, with assets of $15.2 million, is the smallest bank in Arkansas.

By the way, a stock purchase agreement of unspecified value is in play for Allcorp with Dallas investors. Lex Golden, Allcorp chairman and CEO, owns 39.28 percent of the bank holding company as does his son, Alex, Allcorp president.

The Allcorp stock secures a $1.2 million loan to Heartland Bank of Little Rock. The Jan. 27 stock purchase agreement is subject to approval in bankruptcy court.

Back to the Goldens’ creditors: Everest Business Funding of New York got burned on a $109,765 loan made on Dec. 27.

The debt is described as a business loan to support Terry’s Finer Foods, which was in the early stages of eviction before it closed on Feb. 24.

The total debt associated with the grocery store, at 5018 Kavanaugh Blvd. in the Heights neighborhood of Little Rock, tops $500,000.

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