Near the end of 2008, Derrick Coleman denied internet reports he was broke saying a liquidation sale at his former house was solely to get rid of things he no longer needed, not because he needed the money.
But now the truth comes out. Coleman filed for Chapter 7 bankruptcy protection last month, saying he owes his creditors nearly $4.7 million.
He earned tens of millions during his 15-year career but listed assets of just $1 million in papers filed with the U.S. Bankruptcy Court.
Coleman’s desire to invest in the Detroit area after his playing career ended contributed to his financial problems, Coleman’s bankruptcy attorney Mark B. Berke said Friday.
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.”
Colemen’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.
Coleman filed for Chapter 7 protection in March but only recently provided details of his assets and debts. The Chapter 7 filing indicates that the onetime New Jersey Nets forward intends to liquidate his assets in order to pay back creditors.
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.
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