Car-wash mogul Daniel "Danny" Hendon, founder of Danny's Family Companies and dozens of other local businesses, has filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.
Hendon's personal-bankruptcy petition, filed July 25 in U.S. Bankruptcy Court for the District of Arizona, claims about $317 million in debts.
Among them is a $150 million claim by the state of Arizona, labeled "piercing corporate veil allegation." It refers to a state law that says individuals can be held personally liable for some corporate obligations if they fail to follow certain rules.
Hendon's bankruptcy attorney, Mark J. Giunta of Phoenix, did not respond to messages left this week with his answering service.
Phoenix attorneys Bryan Murphy and Andrew Abraham, representing the state in the bankruptcy case, were out of town early this week and could not be reached for comment.
In addition to the state's claim, Hendon's petition lists about $108 million in business debts for which he had made personal guarantees of repayment.
Hendon's "secured" debts, generally the first to be paid back in a bankruptcy proceeding, total about $20 million, according to the documents. They include $7.4 million on Hendon's home in Paradise Valley and $12.8 million on his home in Corona del Mar, Calif.
His personal net worth is $10.5 million, based on equity in the two homes, according to the bankruptcy documents.
Debtors filing for Chapter 11 reorganization usually are attempting to restructure debt without being forced to liquidate all assets.
The bankruptcy case of Hendon, a well-known entrepreneur and Arizona native who owns car washes and other businesses throughout the Valley, has been merged with 24 other Chapter 11 reorganization efforts filed by various Hendon-owned companies, most of them in the first quarter of 2010.
He also has been a key figure, along with business partner Bob Banovac, in efforts to expand Glendale's sports-and-entertainment district.
Hendon is listed in Arizona Corporation Commission records as the legal representative for nearly 90 separate companies.
Those companies, including car washes, retail stores, aviation-related businesses and restaurants, currently employ hundreds of Arizonans.
The bankruptcy filing does not specify what impact, if any, Hendon's debt-restructuring efforts might have on workers.
According to the Chapter 11 documents, Hendon's annual gross income is $441,600, for which no income-tax deductions are listed.
Hendon's primary expenses include $19,000 a month for payments on his two multimillion-dollar homes. He also is required to pay his wife, Kelly Hendon, about $4,800 a week based on a prenuptial agreement.
Other unsecured debts listed in the bankruptcy include about $8.7 million in legal settlements and judgments.
The Chapter 11 documents note that 20 additional civil lawsuits are pending against him, most of them in Maricopa County Superior Court and Orange County (Calif.) Superior Court.
Hendon's bankruptcy petition also lists $89,000 in credit-card debt.
by J. Craig Anderson The Arizona Republic Aug. 3, 2011 12:00 AM
Danny's Car Wash owner files Ch. 11
