Share “Arkansas' Smith files Chapter 7 bankruptcy”

Arkansas' Smith files Chapter 7 bankruptcy

Associated Press Modified: September 6, 2012 at 6:52 pm •  Published: September 6, 2012

LITTLE ROCK, Ark. (AP) — Arkansas coach John L. Smith filed a Chapter 7 bankruptcy petition Thursday for debts he incurred through real estate investments in Kentucky.

Smith told The Associated Press in July he expected to make the filing but also was trying to avoid it.

Documents filed in U.S. Bankruptcy Court in the Western District of Arkansas show Smith has assets of between $1 million and $10 million and debts of between $10 million and $50 million. The filing is preliminary and more details will be added to the record later.

A Chapter 7 filing is used to liquidate debts, as opposed to chapters 11 and 13 which are used for reorganization.

Smith discussed his dismal financial condition during the summer because he didn't want his situation to become a distraction when the No. 8 Razorbacks started playing games.

Smith said in July that he began the land investments when he was coaching Louisville from 1998-2002 and that he and other investors lost money when the real estate market softened.

After Arkansas fired Bobby Petrino in the spring, Smith came on board for a 10-month contract worth $850,000. He left Weber State, where he had accepted the head coaching job.

Continue reading this story on the...