Kosar's assets will be sold off

Former Browns quarterback Bernie Kosar had his bankruptcy converted to a liquidation after a judge granted a court-appointed trustee's request.

U.S. Bankruptcy Judge Raymond B. Ray in Fort Lauderdale, Fla., ordered Kosar's bankruptcy case to be changed to Chapter 7, according to court papers filed Jan. 6. Under Chapter 7 of the U.S. Bankruptcy Code, a trustee is automatically appointed to sell assets and distribute the proceeds to creditors.

Kosar filed for bankruptcy protection June 19 along with three of his companies seeking to restructure his debt under Chapter 11 of the Bankruptcy Code, court papers show. Businesses and some individuals use Chapter 11 to reorganize their financial affairs. Kosar listed $9.2 million in assets and $18.9 million in debt in court documents filed Sept. 23.

The most effective and efficient method to liquidating Kosar's assets is through a Chapter 7, Robert C. Furr, the Chapter 11 trustee appointed in October said in court filings.

Kosar had a Chapter 11 trustee appointed to take over and manage his case, at the request of his ex-wife, Babette Kosar, court papers show. Babette is owed about $3 million from a divorce settlement.

Kosar does not have any business prospects which justify the reorganization effort, and as of Nov. 1 he had missed child support payments totaling $105,000, Furr said in court papers.

Kosar, 46, started his 12-year NFL career with the Browns in 1985. He led the team to the playoffs in each of his first five seasons.

Before the appointment of the Chapter 11 trustee Kosar's lawyers filed what they called a "hybrid" plan to satisfy creditors' claims. Under the proposed plan his companies' assets, including a 6 percent interest in the NHL's 'Florida Panthers valued at $14.4 million, would be liquidated while he would keep assets including his NFL pension and a vehicle, according to court documents filed Sept. 30.

Kosar expects to make about $24,000 per month from radio and personal appearances and from providing services to companies such as Longaberger, court papers show. Kosar, who owes at least $15,000 per month for child support, estimates his monthly expenses at $13,800, leaving him about $11,000 to divide among his ex-wife and unsecured creditors.

(clevelandplaindealer.com)