A West Virginia-based corporation owned by a Proctorville couple owes between $26 and $29 million to investors, according to documents filed in U.S. Bankruptcy Court.

On Feb. 28, Chapter 11 bankruptcy papers were filed for GLC Limited, owned by Gregory L. Crabtree and his wife, Linda Crabtree. Gregory Crabtree is owner of Global Liquidation in Proctorville and was an unsuccessful candidate for Fairland Board of Education in 2009.

Creditors total 574, including Tri-State residents, businesses and government agencies as well as out-of-state creditors.

The 20 largest unsecured claims ranged from $4,114,000 to $235,000.

Chapter 11 allows for a corporation to re-organize and can get financing by allowing new investors to be first creditor on the business’ new earnings, subject to the approval of the bankruptcy court.

Besides Global Liquidation, GLC Limited operated liquidation stores in Milan, Ind., Pigeon Forge and Newport, Tenn. and Nitro, Lesage and Huntington, W.Va.

GLC has also done business under the names of Dan’s Sporting Goods in Huntington, Trustworthy Hardware Store in Proctorville, Lailah’s Mini Mart and DJs Mini Market.

In 2008, the Crabtrees sought funds to buy goods for their liquidation distribution business from private investors. According to court documents about 97 investors provided them with approximately $80,000,000.

“Since 2008, the Debtor has made payments to many of the Investors, often using, upon information and belief, funds invested by other Investors,” the filing states.

“According to the books and records of the Debtor, as of the Petition Date, the Debtor has made payments to certain Investors in the approximate aggregate amount of $68,000,000. As of the Petition Date, the Debtor believes that approximately $26,000,000 to $29,000,000 remains owing to certain of the Investors to reimburse such Investors for the amounts that each invested in the Debtor.”

In 2010, the company had gross sales of approximately $3.7 million with operating losses of approximately $2.2 million.

“In addition the Debtor received new investments in calendar year 2010 of approximately $34,700,000 and made payments to Investors of approximately $34,200,000 in calendar year 2010,” according to court documents.

The documents also state that some investors received reimbursements in excess of the original investment.

“As part of this Chapter 11 case, the Debtor intends, among other things to commence actions to recover those excess amounts from those Investors and ensure that there is an equality of distribution for similarly situated parties,” according to the filings.