The owner of collapsed housing company, Beechwood Homes, could collect millions of dollars in payouts.
The news that Larry King could significantly benefit from the sale of his insolvent company is likely to leave a foul taste in the mouth of struggling creditors and homeowners.
Before Beechwood went down, about 15 companies Mr King was involved in loaned an estimated $50 million to the business.
Some of the loans remain unpaid - meaning Mr King is now on the long list of tradesmen and small investors still waiting for money.
The possible multi-million dollar payout could make him one of the highest paid unsecured creditors.