Tax returns, bank records sought from ex-MU coach

Published 11:29 pm Saturday, March 12, 2011

Jim Donnan among creditors in GLC Limited bankruptcy

PROCTORVILLE — The personal financial records of a former Marshall University football coach have been requested in the ongoing bankruptcy case of GLC Limited.

Bank records and local, state and federal incomes tax returns from 2007 to present of James Donnan and his wife, Mary, are among the records requested by GLC.

GLC is the parent company of Global Liquidation, a business owned and operated by Gregory L and Linda L. Crabtree. On Feb. 28, GLC, a West Virginia-based corporation, filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court.

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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.

Donnan was head football coach at Marshall from 1990-1995. The following year he became head coach at the University of Georgia through 2000. Under Donnan the Thundering Herd won a NCAA Division I-AA national title. He was inducted into the College Football Hall of Fame in 2009.

Donnan is listed individually as a creditor as well as an officer with J &M Brands of Jacksonville, Fla., and having an interest in Mountaineer Wings of Huntington with Dr. Victor “Cuffy” York of Chesapeake. J&M is one of the 20 largest unsecured claims that range from $4,114,000 to $235,000. J&M’s claim is listed at $588,500. The next largest claim is from Donnan Dyleski LLC of Watkinsville, Ga., at $550,000. The representative listed is Todd Donnan, James Donnan’s son. There is no monetary figures listed for the other claims concerning Donnan.

GLC also wants documents relating to communications between it, the Crabtrees and the Donnans.

Also sought are “all documents evidencing any investments, loan extensions of creditor, or otherwise, by any person or entity in the Debtor, including, but not limited to promissory notes and other evidence of loans or investments, any evidence of payments to or on account of any creditors or investors. …”

“The Debtor believes that the Donnans have information and documentation relating to …. matters including the formation of the Debtor and its various business operations; the financing of the Debtor’s business operations, including … all matters relating to the amounts invested in Debtor’s business by various Investors; the relationship and business dealings among Debtor, the Donnans and various third parties,” according to the motion filed on Wednesday requesting the documents,

The Donnans have until April 15 to produce those documents. Donnan’s attorney, William A. DuPre IV of the Atlanta office of the law firm of Miller and Martin, declined to make comment stating it was an ongoing case.

In 2008 the Crabtrees sought funding 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.

A hearing is scheduled Monday at 1 p.m. in the courtroom of Judge Jeffery P. Hopkins of the Southern District court in Cincinnati, on establishing a date by which claims must be filed.

A phone call made to the office of James C. Frooman of Frost Brown Todd in Cincinnati, representing GLC Limited, was not returned by press time.