NORTHWEST ARKANSAS — The trustee for the estate of a Lindsey & Associates real estate executive seeking Chapter 7 bankruptcy approval has recommended selling business interests in companies based in the Lindsey building on Fayetteville’s Joyce Boulevard.
Trustee John T. Lee filed a motion Tuesday with the Western District of Arkansas United States Bankruptcy Court asking to sell interests owned by John David Lindsey and a business entity, John David Lindsey Development LLC, which is wholly owned by Lindsey.
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, as well as a former Razorback and professional football player.
John David Lindsey filed for bankruptcy in February, listing assets of about $9.99 million and $169.6 million in liabilities. 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.
Chapter 7 bankruptcy allows for liquidation of assets to satisfy outstanding debts.
Attorneys and real estate experts reviewed the business entities and none of the entities has any value in excess of the secured debt, Lee stated in the motion.
Lee wrote in the motion that “... years in the future, the real estate market in Northwest Arkansas may return to some level or normalcy, and these entities could develop a positive value, but mortgage payments have to be made until then, and the Estate has no ability to do so ...”
He stated that sales would be in the best interests of the estate.
A request for comment by John David Lindsey or Jim Lindsey was made to Lindsey & Associates spokesman Hugh Jarrett on Wednesday afternoon but a response wasn’t received by press time.
John David Lindsey owns 1 percent of Iron Eagle LLC, 1 percent of Crossover TerraceDevelopment Joint Venture, 0.001 percent of Crossover Terrace Limited Partnership, and 10 percent of Crafton Place Management Co. Inc.
The offers for those interests are $50 by Iron Eagle LLC for the Iron Eagle interest, $50 by Crossover Terrace Development Joint Venture for the Crossover Terrace Development Joint Venture interest, $50 by Crossover Terrace Apartments ALP for the Crossover Terrace Limited Partnership interest, and $100 by Crafton Place Management Co. Inc. for the Crafton Place Management Co. Inc. interest.
John David Lindsey Development LLC owns 99 percent of Copperstone Apartments Limited Partnership and 69 percent of Shiloh Apartments Limited Partnership.
The offers for those interests are $10,000 by Fireblaze V LLC for the Copperstone Apartments Limited Partnership interest and $5,000 by Fireblaze IV LLC for the Shiloh Apartments Limited Partnership interest.
Interested parties and creditors have 21 days from a filed court order approving the sales to file objections, according to the motion.
Court documents state that John David Lindsey claims 100 percent ownership in six companies:
David Lindsey Development LLC, owner of rental homes, single-family lots and undeveloped land.
Mining LLC, owner of dirt-pit property.
Leasing LLC, owner of equipment used in a trucking operation.
Contracting LLC, a contracting operation that is now closed.
Arkansas Truck Services LLC, a trucking operation that is now closed.
Red Dirt Farm Inc., operator of a dirt pit.
John David Lindsey also has ownership or interest in 24 other companies or partnerships and lists 25 co-debtors on various accounts.
On Tuesday, bankruptcy Judge Ben Barry filed an order granting Liberty Bank of Arkansas lots 1 through 45, and lots 142 through 147 of Thornbrook Village Subdivision, Phase I, in Bentonville.
The order also grants Liberty Bank lots 8 through 12 of St. James Park Subdivision in Fayetteville.
The property is released to Liberty Bank in lieu of payment of outstanding debts.
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Business, Pages 19 on 07/29/2010