Jon Rudolph is broke and personally owes creditors more than $12 million, according to bankruptcy documents filed in Yukon Supreme Court last week.

Now that a majority of creditors have accepted the Yukon businessman's repayment proposal, they can expect to get five cents back for every dollar Rudolph owes them, according to the bankruptcy proposal prepared by Bromwich and Smith Inc. of Calgary.

"The proposal provides creditors with a superior recovery than that estimated in a bankruptcy and, accordingly, (we) recommend the approval of the proposal,” David Bromwich writes.

The payments will be made over five years, the document states, with Rudolph paying a maximum of $130,000 a year on his debt.

The Yukon magnate has just $230,000 worth of personal assets, according to Bromwich and Smith's calculations.

Rudolph's house is heavily mortgaged and a cottage worth $130,000 was transferred to his son last June. The only vehicle he has listed is a Mercedes Benz worth $43,000.

Rudolph's yacht and helicopter do not appear on his list of assets because both are owned by mini-corporations, formed for the sole purpose of making the large purchases.

If creditors chose to go the typical bankruptcy route, which would see Rudolph's assets sold and a portion of his after-tax income paid to creditors for 21 months, they would likely get about two cents on the dollar, Bromwich and Smith predict.

"Clearly, it is impossible to accurately predict the total amount which would be received in a bankruptcy,” the document cautions, "and we have made certain assumptions in our calculations.”

Rudolph's financial troubles began last year, when his gold mining and road construction businesses were both hard-hit by rising fuel prices and devastated financial markets.

His flagship company Golden Hill Ventures is now insolvent and Ross Mining Limited is in receivership.

Rudolph personally loaned millions of dollars to his two companies, which is what got him into his current situation, according to his bankruptcy application.

Of the approximately $12 million he owes, $8.5 million represents personal guarantees Rudolph made on behalf of Golden Hill. Another $2.7 million is owed to the Canada Revenue Agency (CRA) for unpaid employment contributions.

A representative of the CRA was one of only two creditors to come to a meeting last Thursday, where the proposal was discussed and a vote taken from all the creditors, most of whom voted by mail or fax.

The revenue agency voted against the proposal, arguing it allows Rudolph to give unfair preference to GE Financial, Rudolph's largest creditor at $7 million.

Eleven of 13 creditors voted for the proposal however, meaning it will likely receive the court's approval when it comes before a Supreme Court justice on Thursday.

Rudolph is currently trying to recover almost $5 million from Golden Hill Ventures in that company's bankruptcy proceedings.