$5M in debt, Rahman files for bankruptcy protection


October 06, 2005|By LEM SATTERFIELD

Baltimore native Hasim Rahman, revealing a debt of more than $5 million, filed for Chapter 11 bankruptcy protection Tuesday in U.S. Bankruptcy Court in Las Vegas.

The filing records show that Rahman, who will earn $4.2 million for his scheduled World Boxing Council title fight against champion Vitali Klitschko on Nov. 12, lists 20 creditors to whom he owes the money.

Rahman's biggest creditors are listed as the Internal Revenue Service, at slightly more than $2 million, and his four-year promoter, Don King, at $2 million even.

The Sun reported last week that King has filed a lawsuit against Rahman, charging that he is entitled to half of the purse that the ex-world champion will earn against Klitschko in accordance with a contractual agreement. The agreement was granted, said King's attorney, Judd Burstein, in the event that King lost the purse bid to be the primary promoter for Klitschko-Rahman. King was outbid by Bob Arum, $12 million to $11.1 million.

"We filed Monday in federal bankruptcy court in Nevada. The only other persons who know are Don King and his attorney, Judd Burstein, whom we put on notice and advised ahead of time that it was going to happen," said Rahman's manager, Steve Nelson. "Because of the litigation from Don King, we sought legal advice, and we are going to be following the counsel's advice throughout on this issue. This way, Rock will be able to fully concentrate on beating Vitali Klitschko on Nov. 12."

Chapter 11 bankruptcy applies to businesses or individuals that are looking to continue operating instead of shutting down or to reorganize their debt. In the case of Rahman, the fighter hopes to develop a payment plan that will hold his creditors in abeyance and allow him to recover.

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