FAYETTEVILLE — Developer and real estate broker John David Lindsey was told Tuesday to provide more information about a trust’s finances before a bankruptcy creditors’ meeting continues on May 18.
Lindsey owes more than $169.6 million to creditors, according to documents filed with the U.S. Bankruptcy Court in March. He filed for Chapter 7 bankruptcy liquidation on Feb. 20.
Lindsey is the principal broker and general manager of Lindsey & Associates, the real estate company founded by his father, Jim Lindsey, a past chairman of the University of Arkansas board of trustees and former Razorback and professional football player.
John David Lindsey claims assets of about $9.99 million to offset the $169.6 million in liabilities listed, court documents state. The total liabilities represent Lindsey’s guarantees against loans for which he may not owe the entire amount. Some listed liabilities were unknown, so final totals may be higher or lower.
On Tuesday, U.S. bankruptcy trustee John T. Lee asked for asset and liability details on a trust that Lindsey, 39, is to receive soon. He is to obtain a half of a third interest in a limited partnership when he turns 40. He also has interests in three property trusts in eastern Arkansas.
According to bankruptcy law, the court may consider some trusts as salable assets to satisfy debts depending on the time of the payout.
Lee told gathered creditors and their attorneys that any properties with little or no equity value would be turned over to the creditors without resistance. The docket report for Lindsey’s case to date shows 13 motions to abandon property filed by creditors.
On April 14, federal judge Ben Barry postponed the hearing for those motions until May 12 because of the volume of information still to be gathered on the properties.
Creditors’ attorneys had no questions for Lindsey, asking only some clarification points from Lee on various topics.
Lindsey told the trustee that he was borrowing about$20,000 that he needs to buy back some exempted personal property.
Court documents state that Lindsey claims 100 percent ownership in six companies:
John David Lindsey Development LLC, which owns rental homes, single-family lots and raw land.
J&A Mining LLC, which owns dirt-pit property.
JDL Leasing LLC, which owns equipment used in a trucking operation.
Lindsey Contracting LLC was a contracting operation that is now closed.
Northwest Arkansas Truck Services LLC was a trucking operation that is now closed.
Stephens Red Dirt Farm Inc., which operates a dirt pit.
Lindsey also has ownership or interest in 24 other companies or partnerships, and lists 25 co-debtors on various accounts.
Business, Pages 27 on 04/21/2010