Former Arkansas Razorbacks football Coach John L. Smith has reached a settlement with his creditors who accused him of attempting to defraud them in his $40.7 million bankruptcy case, ArkansasBusiness.com reported yesterday. The deal must still receive the approval of Bankruptcy Judge Ben Barry. One of the key points of the settlement is that Smith will be allowed to discharge the $12 million he owes to the creditors who sued to block the debts from being discharged. One creditor, RLBB Acquisition LLC of Louisville, Ky., filed a lawsuit on Feb. 11 in U.S. Bankruptcy Court to prevent its debt of $4.5 million from being discharged. As part of the settlement, Smith will pay $100,000 to RLBB from money that’s not tied to his bankruptcy case.
