Ex-UGA coach reaches proposed deal in bankruptcy

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Associated Press

Posted on June 24, 2012 at 7:01 AM

Updated Sunday, Jun 24 at 11:00 AM

ATHENS, Ga. (AP) — Former Georgia football coach Jim Donnan has agreed to a proposed bankruptcy settlement with a West Virginia company and investors who say the coach owes them $40 million lost in a failed Ponzi scheme.

Court records show a federal bankruptcy judge in Ohio approved the settlement Wednesday. Donnan filed for bankruptcy protection last July in Georgia. A judge there must also approve it. A hearing is scheduled July 19.

Retail liquidation company GLC Limited says payouts to investors in a Ponzi scheme drove it into bankruptcy. Donnan was an early investor in GLC and recruited others to invest, but he denies being part of a scheme.

The settlement calls for Donnan to pay more than $7 million to GLC, plus 80 percent of claims by investors he recruited.

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