Murchison and Creditors to Start Debt Negotiations
Former Dallas Cowboys owner Clint Murchison Jr. will meet today with a committee representing his creditors to start negotiating for financial reorganization, his attorney says.
Papers filed in U.S. Bankruptcy Court show that the Dallas promoter has almost $400 million in debts and a little more than $70 million in assets.
Murchison, who suffers from a degenerative nerve disorder that reportedly has not affected his mind but has left him a physical invalid, has nearly 300 creditors--including family members and some of the nation’s largest banks.
In February, Murchison filed for protection under Chapter 11 of the U.S. Bankruptcy Code to prevent a forced liquidation of his assets requested by a group of his creditors.
The document filed in federal bankruptcy court has more than 200 pages.
Richard Holmes, the Dallas partner of the New York-based accounting firm of Oppenheim, Appel, Dixon & Co., said the case has been the most complex ever handled by the firm.
Philip Palmer Jr., Murchison’s attorney, said he hopes to “get rid of $300 million or better” of the debts through liquidation of assets controlled by Murchison’s corporate holdings.
“The next step is to meet with creditors and begin negotiations of a plan,” Palmer said.
But $114.5 million of the $396.7 million in debt is secured by specific assets, including an $8.1-million claim by Murchison’s four children and their trusts.
Murchison may be personally responsible for debts not covered by liquidation, attorneys said.
An accounting of Murchison’s personal assets include an island retreat in the Bahamas worth about $8.5 million, about 25 acres surrounding his north Dallas estate worth about $10 million, automobiles valued at $122,000 and art objects valued at $46,000.