Bankruptcy Spells Doom for Michael Brown's Companies
Employees of ex-hand surgeon Michael "Reporting to Federal Prison in a Week" Brown's San Antonio businesses have been locked out of their leased spaces, and other Brown-related entities nationally have at least temporarily closed.
Brown's companies went into bankruptcy in Houston this week, months after Brown personally filed for -- and then withdrew -- bankruptcy protection in Miami. The Wall Street Journal is citing court documents stating that all of Brown's companies, except for the Houston office on Dacoma, have shuttered, we haven't been able to find those documents.
Brown Medical Center, which manages Brown's extensive business interests, has "unpaid operating liabilities expected to exceed $1.7 million by the end of the month," according to motions filed by attorneys for trustee Ronald J. Sommers.
The motions also lay out the trustee's intent to liquidate most of the companies and sell the assets to pay creditors, as "no buyer has expressed interest in acquiring the business enterprise or the equity interests in the companies as a going concern." Brown's empire has long been hemorrhaging money, and was under the control of a "chief restructuring officer" who Brown allegedly once challenged to a Pay-Per-View boxing bout.
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Brown was also recently sentenced to 30 days in federal prison after pleading guilty to assaulting several flight attendants aboard a British Airways flight last January.
The sentencing, along with the reinstated bankruptcy, prevented divorce proceedings scheduled for late September, a year and a half after Brown's estranged wife Rachel first filed.
Staff had already been furloughed, and salaries slashed, but now it appears that soon even more people will lose their jobs. We feel terrible for these folks.
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