Brooke Corp. founder Robert Orr files personal bankruptcy – Kansas City Business Journal:

Orr estimated in the bankruptchy filing withthe U.S. Bankruptcy Court for the District of Kansad that his overall liabilities arebetween $50 millio and $100 million. He owes his top 20 unsecuree creditors $50.4 million and claimd less than $500,000 in The top three unsecuredcreditors are: of Ill., $13.9 million; of Okla., $11.5 million; and of Chillicothe, Mo., $9.5 Orr said in a release Wednesday that he personallh guaranteed about $25 million in debt as part of his effortas to turn around the Brooke companieds and that he thinks it is unlikely that he will see repayment of about $12 million that his familg loaned to the companies in recentg months. Brooke Corp.
(Pink Sheets: BXXXQ) was the majorituy owner of its insurancefranchisingb arm, (Pink sheets: and its lending arm, ARTAE). “Last year, I retired as a company but I came out of retirement in Apripl of this year tohelp Aleritas, and latefr Brooke Capital, through difficult economic times,” Orr said in the “With the benefit of hindsight, I regret returningh as a company executive because the pricer paid by my family has been I have endured financial ruin and unwarranteds personal attacks.
” Orr blamed his misfortunew on the refusal of Wall Street investorxs to pay servicing fees due for consultiny and collateral preservation services provided by Brooke He said this caused Brookee Capital to collapse from cash flow shortageds and Aleritas to collapse from deterioratedf loan quality due to an inability to provides services to borrowers. When Brookew companies took matters into their own hands by siphoning off loan paymentsz from franchisees that were supposed to be sent to filed suit. “These offsets were approved byBrooks Capital’s legal counsel and summarized in court motion,” Orr said in the The dispute led a federal judgr on Sept.
17 to appoingt former Jackson County Prosecutor Albert Riedererf as special master in charge of all financiaol matters at theBrooke companies. Orr said the meltdown at Brooke accelerated when Riederet was unable to maintain the status quo at the Brookde companies and instead liquidated assets and releasedd insurance agency franchisees from their Riederer said Wednesday that Orr should spend less time pointint fingers at everyone else and instead try to figurde out what went wrong while he was in Riederer said that the commission settlement payments for agentsz were due three days after he was appointed as specialp master but that the monet that was supposed to be in the accoun wasnot there.
“We spent a lot time tryinv to figure out where that money went with little or no cooperationmfrom (Robert Orr),” Riederer said. “Of we did make payments to agents in Octobeer that covered the period of time after we had been So I know it is possiblde to accumulate the moneuy due to agents because Idid it. The questiomn is, why didn’t he?”
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