Patricia Kluge, divorcee’, ex-belly dancer and owner of a checkered past, has filed for chapter 7 bankruptcy after spending her entire divorce settlement. She left her marriage with a settlement that included assets, cash and real estate valued at $1 billion. The amount set the record for the largest divorce settlement until Rupert Murdoch’s divorce.
After her third marriage in 2001 to Bill Moses, she invested $27 million to develop a winery in Virginia. Kluge labeled wines quickly met with critical acclaim and would go on to be poured at many an upscale event.
On the heels of the initial success of the winery, Patricia and her husband borrowed $68 million to upgrade and expand the winery. The operation is located near the Blue Ridge Mountains in Charlottesville, Virginia. One part of the expansion plans included building multi-million dollar homes.
The recession in 2008 halted the expansion, and Kluge found herself in financial trouble. She started to sell off her collection of objet’ d’arts, comprised of many valuable items. A two-day auction at Sotheby’s did not bring in enough money to cover the $69 million owed to the bank.
Patricia Kluge has disclosed the amount of debt to be between $10 million and $50 million, with assets valued between $1 million to $10 million.
Benjamin Brand Services – Chicago bankruptcy lawyer