Hecker lists $767 million in debt

Denny Hecker lived large and crashed hard. That is the story emerging from his latest bankruptcy filing late Wednesday. The numbers reveal a self-made auto salesman who liked to jet to Baja California, hit the casinos in Las Vegas, relax on his yacht and lavish extravagant gifts on family and friends, even as the economy crashed and his fortunes plummeted.

Read the list of Hecker's liabilities.

Hecker reported that he owes $530.3 million to secured creditors and $236.3 million more in unsecured claims. The liability of nearly $767 million is more than 41 times the $18.5 million in assets listed.

Hecker, who filed for personal bankruptcy last month, reported wages so far this year of $101,319 and income from other sources at only $20,921. By contrast, he reported $460,137 in wages and $6.5 million in other income last year. And that was down substantially from 2007, when he listed $471,348 in wages and $22.8 million in other income.

Despite the faltering economy and his falling fortunes, Hecker continued spending. He listed nearly $365,000 in credit card debts -- including $193,462 to the Neiman Marcus department store. And he has debts of $590,000 at two Las Vegas hotels and casinos, where he also reported gambling losses of $650,000.

In the year leading up to his bankruptcy petition, he gave away more than $450,000 in the form of contributions and gifts for family members, business associates, a few politicians and some nonprofit groups.

His largesse included: a $60,000 Rolex watch and $85,000 in other gifts for his wife Tamitha, $65,000 in cash and miscellaneous items for someone named CM Rowan, a Hublot watch and other gifts worth $25,000 for his son Jacob, a $20,000 Hublot watch for business associate Chris McIntire and $35,000 in cash and gifts to Christi M. Rowen. (It's unclear whether the CM Rowan listing was a typo that should have been spelled Rowen; Hecker's attorney could not be reached Thursday.)

Today, Hecker's unsecured notes alone include nearly $200 million owed to banks and financing companies and millions more that he borrowed from friends and associates.

In November, Chrysler yanked Hecker's credit line and demanded repayment of $550 million in loans. Other lenders followed suit. By spring, several banks had seized or frozen bank accounts. Hecker's 52-foot Hatteras yacht and corporate jet have been repossessed, and Hecker is embroiled in at least 18 lawsuits, most claiming he or his companies defaulted on loans and other contractual or legal obligations.

Among his personal property, Hecker shows $24,800 in savings, $116,000 in retirement accounts, $2 million in pending tax refunds, watches valued at $35,000, $5,000 in golf clubs and insurance policies worth $12,000.

It is quite a comedown for Hecker, who amassed an auto empire that once boasted $6.8 billion in annual revenue. Today he lists several investments, dealerships, Advantage Rent A Car subsidiaries and other assets as having zero or negative worth. His filings show that he is upside down in many real estate investments, owing more on properties than they are worth. The same goes for many of his business holdings.

Hecker's equity in the Denny Hecker Automotive Group, which once had 26 dealerships in Minnesota and California, is now listed at a negative $4.9 million. His equity in DEH Funding LLC is listed at a negative $2.925 million. His Walden Fleet Services firm shows a negative value of $8 million.

Hecker apparently liked the restaurant business but he is eating much of his investment there. He listed his 51 percent stake in Bellanotte Restaurant as a loss, worth negative $285,600. His one-third ownership of two Champps restaurants is valued at negative $1.25 million. His 31 percent share of the bankrupt Seven Steakhouse and Sushi is valued at negative $367,200.

Dealership properties held by Jacob Holdings properties in Rogers, Monticello, Stillwater, Waite Park and St. Louis Park also are reportedly worthless.

Among his major secured creditors are Chrysler Financial, due $476.9 million from a recent court judgment; Axle Capital in Connecticut, $15 million; and U.S. Bank, $8.3 million. U.S. Bank is owed $44 million more in unsecured loans.

Hecker says he owes TCF National Bank $6.5 million in secured debt and an additional $6.5 million in unsecured loans relating to Jacob Holdings of Crosslake, where he has his largest house and which he claims is exempt from claims in the bankruptcy.

Too many banks to list

Hecker also is on the hook for much of his auto business loans, which he guaranteed. The debts include $56 million to Hyundai Motors, $4.7 million to GMAC LLC, $13.8 million to Toyota Motor Credit Corp. and $3.4 million to Toyota Financial Savings Bank.

Scores of creditors, including the IRS and state of Minnesota, are owed additional money. His debts to banks in Minnesota and elsewhere are too numerous to list. In some cases, Hecker listed the amount of his debts as "unknown."

In a note to the court, Hecker noted that state officials seized his records during a raid in June as part of an investigation into whether sales taxes were paid on autos sold at Hecker dealerships that have since closed. He said his schedules will be completed once he recoups his records.

Hecker lists $10.87 million in personal property and $7.64 million worth of real estate, with the largest property listed as a $4.4 million home in Crosslake, Minn. (A county assessor's office recently put the property value at nearly $8.9 million.)

In a statement sent to the Star Tribune, Hecker noted that his Chapter 7 bankruptcy "reflects an amount of gross debt in excess of $700M" but noted that the sum included loans he personally guaranteed and included the value of collateral that had already been taken away.

Hecker continued to blame Chrysler Financial for the bulk of his financial woes, saying it unfairly yanked his credit line. Hecker has shut 25 dealerships, his mortgage brokerage business, and his auto fleet and leasing businesses. The Minnesota Department of Commerce recently revoked his mortgage license and a bankruptcy trustee is suing Hecker's bankrupt Advantage Rent A Car operation for alleged civil fraud and self dealing, which Hecker denies.

Dee DePass • 612-673-7725