Developer Rick Burton, co-founder of Rightpath Limited Development Group, has filed a massive personal bankruptcy, The Arizona Republic reports.
Burton and his business partners helped develop a corporate luxury jet hub and a resort complex in Glendale. After making a few business blunders, however, Burton is now reportedly in $310 million of debt. He filed for Chapter 7 bankruptcy in Las Vegas.
According to the filings, Burton owes over $310 million to investors, but owns only $6,500 in assets. His assets are made up of home furnishings, $50 worth of records and CDs, and a $50 watch, the court records state. His two bank accounts hold only $96, according to the filings.
Burton and his Rightpath associates developed luxury jet hubs in Glendale, Goodyear, and Yuma. In 2009, however, the group defaulted on its loans and failed to keep up with its lease payments. The Glendale and Yuma hubs have since closed.
Rightpath was also involved in the failed development of a resort complex in Glendale called Main Street. The complex was to include stores, office space, and a hotel. After Rightpath failed to secure enough investors, however, the land fell into foreclosure before construction could begin.
According to his petition, Burton is now making $10,000 a month working as the chief operating officer of a Las Vegas sandbags company. However, he lists his personal expenses are listed as more than $9,300 a month.
Filing for a Chapter 7 bankruptcy will allow Burton to discharge nearly all of his debts in one go. In a Chapter 7, the debtor’s assets are liquidated and the proceeds paid to the debtor’s creditors. Since Burton clearly doesn’t have enough assets to cover all of his debts, many of his creditors will be out of luck.
According to his bankruptcy petition, Burton currently owes the city of Glendale $20 million for a bond requirement associated with the Main Street development. It’s unlikely the city will see that debt paid.