L.A. Thrift Listed on Bankruptcy Petition of ‘Snake-Bit’ Arkansas Man

A North Little Rock man with $115 million in debts has filed Arkansas’ biggest bankruptcy petition, which cites a $23-million claim involving a Los Angeles savings and loan institution.

James R. Hodges Sr. filed a Chapter 7 petition Friday. Under the filing, a trustee will be appointed by Bankruptcy Judge James. G. Mixon to sell assets and use the proceeds to pay Hodges’ creditors.

Hodges listed debts ranging from $23 million to less than $100, many stemming from problems with the oil and gas markets.

Hodges, an investor and developer, “just got snake-bit by the drop in the oil and gas investments,” his attorney, Robert J. Brown said.

The petition had no estimate of assets, but Brown said few assets were without liens.

Brown said said some of the larger claims were pending, such as lawsuits that have been filed, but not yet decided.

“That probably means zero to unsecured creditors,” Brown said.

The petition didn’t list which creditors were secured or unsecured, but several of the largest debts were associated with oil and gas development limited partnerships.

The largest debt in the petition was the $23 million to North American Savings & Loan Assn. of Los Angeles, which stemmed from a lawsuit filed in California for the failure of the thrift.

Brown said he didn’t think Hodges had any liability in that case. Brown said Hodges is mentioned in the lawsuit but is not a defendant.

Two debts of $10 million are owed to the federal government. Brown said they probably refer to the same $10-million fine imposed by the federal Environmental Protection Agency over an oil field operation in Kentucky. Kentucky has also levied $560,000 in fines in the case.

The petition lists a related $10-million debt which is owed to B. F. Shamburger of Interstate Drilling Inc., of Owensboro, Ky.

Other large creditors listed in the petition are First Federal Savings & Loan of Oklahoma and Siscorp of Edmonds, Okla., for $7 million each, and High Country Investment Corp. of Idaho Springs, Colo., $5 million.

Also, Oklahoma Federal Savings & Loan of Woodward, Okla.; and United Savings & Loan of Durant, Okla., $3 million each. National Bank of Arkansas is owed $1.1 million.

Other debts listed in the petition include $500,000 to Union National Bank and $450,000 to Worthen Bank and Trust Co.

There is also a $250,000 debt to the state of Arkansas, which Brown said was a use tax on a jet that Hodges bought out of state for use in Arkansas.

Brown said it would probably take a couple of months to sift through the assets. He also said he’ll probably ask for more time to file an asset statement. Normally, asset statements must be filed within 15 days.