Curtis Carlson Nelson Files for Bankruptcy
Nearly four months after being sued by Crown Bank over unpaid loans, Curtis Carlson Nelson has filed for Chapter 11 bankruptcy protection, listing the bank as his largest unsecured creditor.
Nelson-grandson of Carlson Companies founder Curtis Carlson-listed $41.25 million in liabilities and $4.24 million in assets in his bankruptcy petition, which was filed Monday and listed 78 unsecured creditors.
According to the bankruptcy documents, which were filed in U.S. Bankruptcy Court in Minnesota, more than half of Nelson's liabilities, or $24.6 million worth, are unsecured.
Court documents indicate that Nelson owes $750,000 to his parents and $7 million to a family trust. Other large creditors include JPMorgan Chase Bank, which is owed $3.05 million, and his ex-wife Marjorie Nelson, who is owed $1.28 million.
Late last year, Edina-based Crown Bank sued Nelson for allegedly misrepresenting his finances and failing to pay back more than $4 million in loans. According to court documents, which were filed in October in Hennepin County District Court, Nelson failed to pay back three loans totaling more than $3.13 million in principal.
In addition, Crown Bank claims that Nelson agreed to pay back $1 million of a $2 million loan for Visible Customer-a company he ran that went bankrupt last year. The case was closed in February when Judge Joseph Klein ordered Nelson to pay the bank $3.8 million.
Before Nelson started running Visible Customer, he held various senior-level positions at Carlson Companies, and it was expected by many that he would succeed his mother-Marilyn Carlson Nelson-as CEO.
However, Nelson resigned in 2006 and is now in a legal battle with his mother and Carlson Companies over claims that he was wrongfully denied the CEO spot. In March 2008, Carlson Companies named Hubert Joly president and CEO. Joly is the first executive outside the Carlson family to hold the position.