Tom Martino after bankruptcy settlement: "It was arrogance mixed with greed"
Last week, we noted that KHOW's Tom Martino was negotiating a bankruptcy settlement for a 2011 Chapter 7 filing on reported debts of $78 million. He's now made a $3.6 million-plus deal that allows him to retain his Troubleshooter network and some pricey doodads. We asked him for a response to this development, and his reply blends rationalization and responsibility. He admits, though, that in some ways, he was his own worst financial enemy.
As we've reported, Martino's creditors included First Citizens Bank, which took over his loans from another institution, Colorado Capital Bank, and International Bank. Three months after his September 2011 filing, he sued both in part to determine if his debt was dischargeable, and also because he felt the banks had implied that, among other things, he'd tried to protect assets from seizure or liquidation by listing them under his wife's name.
Well over a year of back-and-forths and public bickering followed before a trial in regard to the First Citizens lawsuit got underway in January. But on the second day of what looked to be a contentious legal exchange, Martino's team asked the judge to postpone the case to give both sides an opportunity to conduct settlement negotiations that came to fruition this week.
First Citizens Bank & Trust in downtown Denver.
According to the Denver Post, Martino eventually ponied up $3.6 million, with another $1.88 million to be distributed in 36 monthly payments -- and he'll get a $200,000 discount if he hits the $1.68 million mark by the end of 2014.
The transaction leaves the online Troubleshooter Network and Referral List in Martino's possession; they're valued at $450,000. And while he also gets to keep his helicopter and antique airplane, he may not have anywhere especially spiffy to put them, since, as the Post points out, he'd previously parted with his own personal hangar at the behest of a judge.
In an e-mail to Westword, Martino expresses no bitterness about saying goodbye to so much of his wealth to settle the matter.
"From the very beginning of my financial problems in real estate, I desired to settle my debt," he writes. "I owed the money and it was the right thing to do. I basically had three commercial creditors. Two of them bought my debt from failed banks for pennies on the dollar. They will make a handsome profit and deserve it. The other creditor will come close to breaking even.
"I am determined to pay this off as soon as I can," he adds.
Continue for more comments from Tom Martino following his bankruptcy settlement.