LITTLE ROCK, Ark. — Creditors are trying to block former Arkansas coach John L. Smith from liquidating $40.7 million in debt, saying he moved several properties and more than $2 million from his holdings prior to filing for Chapter 7 bankruptcy protection.
Federal bankruptcy court filings by Smith’s creditors say he cashed $1 million in certificates of deposit in 2008 and he is “unable to explain the current location of the funds.” The documents also allege that in 2008 and 2009, Smith transferred $1.16 million to his wife, son and daughter-in-law. Most of that sum, $975,000, went to the Diana Smith Trust, which is named for Smith’s wife.