Blue Stuff inventor files Chapter 7
Bankruptcy petition lists more than $4 million in debt

Jim Stafford Published: February 19, 2005

The inventor of the popular emu-based ointment Blue Stuff has filed a Chapter 7 bankruptcy petition that lists more than $4 million in debts, most related to the once high-flying business.

Jack H. McClung filed the liquidation petition in U.S. Bankruptcy Court for the Western District of Oklahoma on Feb. 10.

McClung listed assets of more than $1.5 million and attached a list of unsecured creditors that was 68 pages long. Most of them were Blue Stuff shareholders. Others were businesses owed money by now defunct Blue Stuff.

The Blue Stuff Inc. business was sold by its creditor, IBC Bank, in October to Blue Spring International, a limited liability company managed by McClung's daughter, Debra McClung Murray.

McClung's bankruptcy filing should have no effect on the operations of Blue Springs International, which continues to market the ointment, said Steve Brown, vice president for marketing.

"Jack McClung is not affiliated in any way with Blue Spring, Brown said. "Blue Stuff ceased to exist in September.

In the bankruptcy filing, McClung lists his residence as 19200 E Camp Drive in the rural Logan County community of Meridian. The property includes 160 acres and is valued at $500,000, according to the filing.

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