$10 million in debt listed in Scott Jordan bankruptcy filing - KWWL - Eastern Iowa Breaking News, Weather, Closings

$10 million in debt listed in Scott Jordan bankruptcy petition filing

Posted: Updated:

Longtime Cedar Valley businessman and current Black Hawk County Supervisor Scott Jordan has filed a Chapter 13 Bankruptcy petition in Federal Bankruptcy Court in Cedar Rapids. The recent filing indicates Jordan owes more than $10 million to more than 45 creditors.

Scott Jordan is well known in local business and political circles, and is a former Black Hawk County Supervisors Board Chair. He has been a part of numerous area business entities, such as Scott's Electric, Heartland Properties, Heartland Hills, Savage Holdings and the former Eveland-Jordan Plaza, now known as Eveland Plaza.

In an interview on Tuesday afternoon, Jordan said he filed an emergency bankruptcy petition to "stop the bleeding and re-group."

Cedar Falls Attorney Don Gottschalk recently filed two petitions in Federal Bankruptcy Court on behalf of Scott Jordan. The first was filed Aug. 23, and a second filing came on Sept. 13, which included updated liability numbers for the court.

According to the court documents filed in Federal Bankruptcy Court and obtained by KWWL News, Scott Jordan lists assets of $590,200.00.  The filing lists liabilities of $10,440,898.46, owed to at least 45 different creditors. The original filing on Aug. 23, listed total liabilities at $9,950,073.50, but that liability number was even higher on the second filing, going over the $10 million mark.

Jordan says the record flooding in 2008 ruined Scott's Electric, his business on Howard Avenue, as well as several other rental properties that Jordan owns. Before the flooding, Scott's Electric employed 53 people and today the business has just six electricians on staff.

At least eight Cedar Valley area banks are listed among the creditors, including Lincoln Savings Bank, Farmers State Bank, Community National Bank, First Security State Bank, Liberty Bank, Regions Bank, Wells Fargo and Bank Iowa.

By far, the largest secured creditor listed on the filing is Lincoln Savings Bank, to which the bankruptcy petition says Jordan owes $6,745,000. The interest on the loans is accumulating at about $1,000 a day and Jordan says the pressure has been building for some time.

The Bankruptcy Court documents indicate Jordan still owes his former, longtime business partner John Eveland at least $375,000.

A Chapter 13 filing, which creditors could challenge, means Jordan will try to repay all or part of the debts by making periodic installment payments. Jordan also said he is counting on two separate $4 million bailout loans from the government to get him out of bankruptcy. 

Scott Jordan's creditors will meet again on Oct. 17, at the Waterloo Public Library. The bankruptcy court will have to decide if Jordan's 5-year repayment plan is even feasible.

Powered by Frankly