One of the loans in question involves the $530 million Telesis Community Credit Union, which is the majority owner of business lending CUSO Business Partners. Telesis filed a breach of contract claim against International Shoppes LLC and Abdul Mathin on Nov. 2 in Florida Middle District Court. The $11.1 million shopping center's loans are currently in a receivership process. The property is not likely to be acquired by the lender through foreclosure because the borrower is actively working on a resolution and no foreclosure proceeding has been initiated at this point.
Loren Houchen, chief operating officer of Business Partners, said the Florida retail property has 13 credit union participants, including Telesis, the lead lender.
The CU is also working to settle a $6.8 million Oregon property loan for an office building. The case is currently in bankruptcy and has not yet been acquired by the lender because the bankruptcy process puts the foreclosure on hold, Telesis said. Houchen said the Oregon property has seven CU participants, and Telesis is the lead lender.
Houchen previously told Credit Union Times that seeking a state-court appointed receiver is just another loan resolution to avoid foreclosures. Receivership cases may be initiated as stand-alone processes or as an initial step in a potential foreclosure process, he explained. The receivership process would provide greater operating control of the property operations and cash flow while the borrower and receiver may proceed with a property sale to pay off the loan in full, Houchen said. (CU Times, Dec. 16, 2009).