Curtis Carlson Nelson, once the heir apparent to run the Carlson corporate empire, filed for Chapter 11 bankruptcy protection this week, listing $41.25 million in liabilities against $4.1 million in assets.
The filing is at least the third economic setback for the Minnetonka businessman since the first of the year and also represents bad news for a string of lenders that provided Nelson with relatively easy access to capital.
Nelson declined to comment for this story Tuesday on the advice of his attorney.
Crown Bank is listed as Nelson's largest unsecured creditor, followed by a host of other banks and lenders. Some of the institutions who made loans to Nelson are prominent ones, including Wells Fargo and U.S. Bank. Others are small institutions, including credit unions in Cloquet, Minn., and Lino Lakes.
Crown Bank said it intends to "aggressively pursue all remedies."
More than half of Nelson's liabilities -- $24.6 million -- are unsecured.
Chapter 11 bankruptcy provides for a court-supervised restructuring of the filer's debt. Creditors might recover a portion of the money owed them.
Nelson's assets are primarily in real estate. He currently owns a second home in Minnetonka adjacent to the one in foreclosure.