Wichita developer and builder Tim Malone declared Chapter 7 liquidation bankruptcy Monday, citing liabilities of $7.5 million and assets of $1.2 million in a 179-page filing.
Included among the assets are scores of vacant lots in multiple developments and several partial or completed homes.
Creditors include about 30 banks and numerous private investors, dozens of construction suppliers and other businesses.
Malone developed a complex series of projects and investment relations inside and outside Wichita during the housing boom, which he tried to parlay into an ambitious housing and retail/entertainment project in Junction City for troops returning to Fort Riley.
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But the return of the military and their families to Fort Riley in 2006 and 2007 was much slower than many developers had expected. Malone, in a statement released Monday, blamed the military for issuing misleading numbers.
Overextended financially, the collapse of his Junction City project and a general slowdown in construction cascaded down on his many Wichita-area projects.
"Most of the people and banks that invested in me know that I did everything possible to try and turn things around, but in the end, facing the on-going adverse market conditions has been like facing a tsunami of obstacles," Malone said in the statement.
He turned over many of his houses to creditors to satisfy judgments. In the past couple of years he would occasionally trade lots or homes to people he owed.
Some of his creditors blame Malone, not the Army or the economy, for the collapse, calling his business practices recklessly aggressive.
Mohammad Aghakhani, an unsecured creditor, is owed $135,000 according to the filing. He said he collaborated with Malone on the Sandplum subdivision, near 45th and Webb, and lent him money on many occasions.
When Malone's finances got tight, he wasn't scrupulous about repaying money that he borrowed, Aghakhani said.
Malone has more than 100 legal judgments against him, according to the bankruptcy filing.
In recent months, Malone has gotten into the business of buying homes out of foreclosure and renovating them for resale.
In his statement, he said he will help homeowners in foreclosure, providing expertise on how they can either stay in their homes or sell their homes quickly. His own home was recently foreclosed upon.
"I will also be taking more time to be involved with my church and my family and as I recover from this, I will be focusing on giving back to the community," he said in the statement.