Bankruptcy

Vick Files for Chapter 11 Bankruptcy

By J. Michael McBride

Michael Vick, the former Atlanta Falcons quarterback, is serving a 23-month prison sentence after pleading guilty to federal dogfighting charges last year. “He was subsequently suspended indefinitely without pay and lost all his major sponsors, including Nike.” Vick filed for Chapter 11 bankruptcy Monday in the Eastern District of Virginia. The debt includes part of a signing bonus that the Falcons are seeking to recover.

According to the bankruptcy filing, “Vick cites debts of $10 million to $50 million and a comparable amount of assets.” The Falcons tried to recover about $20 million in bonuses Vick earned from 2004 to 2007. But a federal judge held that “Vick is entitled to keep $16 million and must return $3.75 million of the money paid to him for playing football through the 2014 season.”

Other creditors with claims against Vick include Wachovia Bank and the Royal Bank of Canada. “A federal district court in Atlanta ruled that Vick must repay $1.1 million to Wachovia for defaulting on a loan to open a liquor store and restaurant.” “That decision came less than a week after a judge ruled that Vick must repay the Royal Bank of Canada $2.4 million for defaulting on yet another loan.”

Here is a link to the article:
http://biz.yahoo.com/law/080710/548d6774bfa2b01a74252644467a189a.html?.v=1

Another link on the subject:
http://www.usatoday.com/sports/football/nfl/2008-07-08-vick-bankruptcy_N.htm?csp=34

Yameena

Full post as published by Texas Lawyer Blog on July 11, 2008 (boomark / email).