Former NFL Star Quarterback Will Make Creditors Practically Whole using Chapter 11 Process
FORT LAUDERDALE, FL / ACCESSWIRE / November 16, 2017 / Nearly a decade after former NFL quarterback Michael Vick filed bankruptcy, his creditors are about to receive their final distribution, said liquidating trustee Joseph Luzinski. Luzinski, who is a senior managing director with Development Specialists, Inc. in South Florida, said in total, creditors will receive approximately 99 cents on the dollar.
"This is a spectacular result in a case like this," said Luzinski. "It's not too often you can recover and distribute this much value in a Chapter 11."
In 2007, Vick pleaded guilty to participating in a dog fighting ring and went to federal prison. Around the same time, he faced a series of serious financial problems and was unable to meet all of his obligations. In 2008, nearly $18 million in debt and failing to reach agreements with his biggest creditors, he filed a Chapter 11 bankruptcy and developed a court-approved plan of reorganization. Part of that plan included him living on a strict budget for years while he rejoined the NFL and started earning money again.
"Vick was able to pay back most of what he owed thanks to salaries he received from playing pro football again," said Luzinski. "Other funds were raised by selling off real estate holdings and other assets held by the bankruptcy estate."
In all, creditors received six distributions with the final one amounting to approximately $1.5 million. The pay-out plan was initially to be five years, but Luzinski and his team of financial experts from DSI requested more time so that they could recover and maximize value.
"Vick has been a stand-up guy from the very beginning," said Luzinski. "He could have taken the easy way out by filing a Chapter 7 which would have meant most of his debts would have been forgiven. He did the right thing, worked hard and honored his commitment to substantially pay back the valid claims in his estate."
About Development Specialists, Inc. (DSI): DSI is a leading national provider of management consulting and financial advisory services, including turnaround consulting, fiduciary roles, financial restructuring, litigation support, operational wind‐down oversight and forensic accounting services. Clients include business owners, corporate boards of directors, financial services institutions, secured lenders, bondholders, unsecured creditors and creditor committees. For more than 40 years, DSI has been guided by a single objective: maximizing value for all stakeholders. With its highly skilled and diverse team of professionals, offices throughout the United States and in Europe, and an unparalleled range of experience, DSI not only achieves that objective, but has also built a solid reputation as an industry leader. For more, visit www.dsi.biz.
SOURCE: Development Specialists, Inc.
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