Former hostage files for bankruptcy; claims $1.9 million in debts

After being released by Islamic militants in 1991 following nearly seven years in captivity in the Middle East, former journalist Terry Anderson sued the Iranian government, and reportedly received some $26 million in damages.

Earlier this month, however, Anderson, who is already facing a foreclosure action on his horse ranch in Athens County's Rome Township, filed for Chapter 7 personal bankruptcy in a federal court in Kentucky.

Contacted on Wednesday, Anderson, who formerly lived and owned or co-owned businesses in Athens County, said he had no comment on the bankruptcy proceeding.

In the filing, Anderson claimed to have assets of a little under $61,000 and to owe nearly $1.9 million to various creditors, including credit-card companies and the Hocking Valley Bank in Athens. He reported owing the bank an estimated $1.27 million in business-related debts, and also owing a loan of more than $91,000 to the Bank of America in Jacksonville, Fla.

The bankruptcy filing puts on hold the foreclosure proceeding in Athens County Common Pleas Court, in which local developer Brent Hayes is attempting to collect on an alleged debt of around $300,000 from Anderson.

The parties to the case had apparently been making some progress toward resolving the case, with Anderson attempting to sell off some of the Willow Run Ranch property near his former home in Troy Township to satisfy his creditors, including Hocking Valley Bank.

On Nov. 3, however, Anderson, who ran unsuccessfully as a Democrat for the Ohio Senate in 2004, filed a bankruptcy petition in the U.S. Bankruptcy Court for the Eastern District of Kentucky, Lexington Division.

In the filing, he reports owning about $61,000 worth of personal property, most of it "“ an estimated $46,000 "“ in the form of a TIAA-CREF pension fund. He also reported owning a 2001 GM Yukon SUV with 175,000 miles on it, worth an estimated $6,000.

Though Anderson is sole or part owner of a number of businesses both local and abroad, he reported that their cash value was trivial.

He reported that GTA Holdings LLC, for example, of which he owns 100 percent, owns a building at 63 N. Court St. (home of the now-defunct Blue Gator bar/restaurant), but added that the mortgage on the site to Hocking Valley Bank exceeds the value of the building.

"GTA also owned a small warehouse building in Glouster, Ohio, but this was transferred to Susan Gwinn in payment of legal fees," the filing stated. Gwinn, chair of the Athens County Democratic Party, has also represented Anderson in legal matters. The company's value is listed as $10.

Anderson also owns 100 percent of TMS Holdings, LLC, a charter-boat business that also booked speaking engagements for Anderson. He reported that the sailboat that the business used was sold in 2008, and TMS is out of business. Its value is also given as $10.

Willow Run Ranch, LLC, is another firm owned solely by Anderson, but "depending on the outcome of the liquidation of other LLCs, it may or may not have any value," the filing stated. Its value is given as "unknown."

Anderson is part owner in three other businesses, according to the document "“ Zio Products, LLC, (about 25 percent), a food company; 108 Holdings, LLC (50 percent), which ran a restaurant in St. Thomas in the Carribbean; and Court Street Management, LLC (50 percent).

Court Street Management, which had three parts, designated as I, II and III, ran the Blue Gator and Skipper's Restaurant, both now out of business.

Zio Products is closed and insolvent, the filing said; 108 Holdings is out of business; and in the case of the three Court Street Management firms "“ in which Anderson partnered with Joel Schechtman "“ the debts of the companies exceed the value of their assets, Anderson reported.

The values of Zio and 108 Holdings are each given as $10, while Court Street Management is valued at $30.

As to creditors, Anderson included the Athens County Treasurer's office, which is seeking to collect more than $22,000 in property taxes on GTA Holdings.

He also listed debts carried on numerous credit cards, some of which were for businesses, in the neighborhood of $290,000.

He also lists miscellaneous debts to various creditors, including Hayes, whom Anderson estimates he owes $100,000. The filing noted that Hayes is claiming over $300,000, based on a $150,000 promissory note plus penalties, interest, costs and attorney fees. However, it added, part of the Willow Run Ranch land was sold for $110,000 and is being held in escrow for Hayes.

Overall, Anderson reported, he has $60,796 in personal property, while he owes $25,790 to creditors holding unsecured property claims, and $1,870,475 to creditors with unsecured non-priority claims, such as credit card companies.

Currently, the filing indicates, Anderson is renting a home in Nicholasville, Ky., for $800 a month. He reported that he is earning about $5,800 a month in gross wages as a visiting lecturer at the University of Kentucky, a position he started in January. After deductions, he reported, his salary just about covers his monthly living expenses, leaving him about $260 a month over.

To try to pay off his debts, Anderson reported, he has already sold off various property, including a collection of first-edition books, for about $6,000; a home in Tennessee where his sister had been living, for $156,500; a sailboat for $160,000; and a number of horses and paintings for varying sums.