Ex-Georgia coach reaches proposed deal in bankruptcy

Ex-UGA coach reaches deal

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.

View 2013 College Football Odds

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.

Want More From TheSpread.com? Follow us on Twitterand Facebook or Subscribe to Our News Feeds!