Bankruptcy Trial Continues

The bankruptcy trial of Bill L. Walters, a figure in failed Silverado Banking, Savings & Loan, entered its third week Monday.

The former Denver real estate developer has asked U.S. Bankruptcy Judge John J. Wilson to approve his application for liquidation of his assets under Chapter 7 of the U.S. Bankruptcy Code. Walters says he owes creditors $279 million.

But federal regulatory officials have disputed his claim that he is broke, alleging that Walters hid millions of dollars in assets before he filed for bankruptcy in November, 1990.

Walters, who defaulted on $100 million in loans from Silverado, gained notoriety when he testified before a congressional committee after the thrift was seized by the government. President Bush’s son Neil was also associated with the thrift.

If Wilson approves the bankruptcy filing, Walters would be protected from his creditors. The Resolution Trust Corp. and the Federal Deposit Insurance Corp. have joined forces to block Walters’ request. . The bankruptcy judge has not said when he will make a ruling on the case or if his decision will be announced from the bench or in a written judgment.