Ex-NBA star Coleman files for bankruptcy
Former National Basketball Association No. 1 draft-pick Derrick
Coleman, who filed for Chapter 7 bankruptcy protection last month,
says he owes his creditors nearly $4.7 million,
The Wall Street Journal’s Bankruptcy Beat blog reported
The ex-Syracuse University standout and 1991 NBA Rookie of
the Year earned tens of millions during a 15-year playing career
but listed assets of just $1 million in papers filed with the U.S.
Bankruptcy Court in Detroit, Coleman’s hometown.
Coleman’s desire to invest in the Detroit area after
his playing career ended contributed to his financial problems, his
bankruptcy attorney Mark B. Berke said.
Among Coleman’s ventures is a struggling Detroit
development called Coleman’s Corner, an attempt to revive one
of the city’s most downtrodden neighborhoods. Coleman
defaulted on loans related to the mall last year.
“Mr. Coleman was focused on investing in various
communities throughout the city of Detroit by developing real
estate, creating jobs and revitalizing business
opportunities,” Berke said. “Due to the state of the
economy, including the decline in the real estate market, Mr.
Coleman’s investments could not be sustained.”
The former New Jersey Nets forward’s other business interests
include ownership stakes in the Hilton Garden Suites hotel in
downtown Detroit, a Tim Hortons Inc. doughnut shop franchise and
Hungry Howie’s Pizza store, according to court papers.
Among Coleman’s largest debts is $1.3 million owed to
Comerica Bank in connection with a lawsuit and a $1 million loan on
property in Michigan from Thornburg Mortgage Home Loans.
Coleman also owes Detroit mayor and fellow Syracuse legend
Dave Bing $50,000 from a loan granted last year.
Among the assets that could be available for creditors is an
eclectic mix of automobiles: a 1957 Buick convertible, worth
$20,000; a 1970 Chevrolet Nova, worth $5,000; and a 1997 Bentley
convertible, valued at $50,000.
Coleman also listed two Seadoo watercraft, his $90,000 NBA
pension and two chinchilla fur coats.