In what his attorneys say is an effort to stop the financial bleeding, former pro football quarterback Michael Vick filed for Chapter 11 protection yesterday in Newport News. Bloomberg has an account of the filing, and we have the petition and a motion to extend the time to file a statement of financial affairs.
His attorneys, Paul K. Campson of Norfolk and Peter R. Ginsberg of New York, say the filing was precipitated by the efforts of Joel Enterprises, a sports agent, to collect on a $4.5 million judgment. Other creditors have been cooperative, but Vick and his financial advisor, David Talbot, have concluded that the petition is the best way “to avoid the judgment and its impact on other creditors. Now that it has been commenced, the bankruptcy case may be beneficial to creditors and the estate by providing a single forum in which the Debtor may effectuate a global resolution of all of the claims against him,” according to the motion to extend.
The bankruptcy also “may provide a mechanism for the Debtor to recover assets from certain third parties who may have taken advantage of the Debtor during the pre-petition period,” the motion says.
The petition lists assets and liabilities of between $10 million and $50 million. Vick is serving a 23-month prison term in Leavenworth, Kan., on a federal dogfighting conspiracy charge. After the charge was filed, the National Football League suspended him, and the Atlanta Falcons terminated his contract.
By Alan Cooper