Another Developer Bankruptcy

Another developer with ties to Northwest Arkansas has filed for Chapter 7 bankruptcy protection.

This one is Michael McClendon of Little Rock, who has $5.5 million in debts and $3.1 million in assets. McClendon owned a third of DSG Consulting Inc. of Little Rock. (McClendon’s third was sold to his son in December 2009 for $600,000, the bankruptcy filing shows.)

McClendon also was involved in real estate development under the names of SML Landholdings LLC and the holding company MTM Enterprises LLC, which formed in 2006 and had properties for development in Northwest Arkansas. The properties were going to be used for residential purposes, according to McClendon’s bankruptcy attorney, James Dowden of Little Rock.

The biggest of McClendon’s debts are to First State Bank in Lonoke, which is owed $2.3 million; Metropolitan National Bank of Little Rock, $1.5 million; and Chambers Bank of North Arkansas, which merged with Chambers Bank of Danville in November 2008, $1.3 million.