Texans Credit Union said a federal bankruptcy court in Dallas ruled that a realty firm owes its commercial real estate lending CUSO more than $40 million in a suit involving a defaulted Illinois property loan.
The $1.5 billion CU said the $40 million will be repaid by four Dallas real estate investors with Realty America Group LLC, who had guaranteed a Credit Union Liquidity Services LLC loan for the redevelopment of the Lincoln Mall project in Cook County, Ill. Previously known as Texans Commercial Capital, CULS provides commercial real estate loan servicing and asset management for Texans and other CUs.
When the loan went into default, CULS demanded that the guarantors honor their obligations. Litigation soon followed, with the guarantors alleging that CULS, Texans and a number of officers and directors associated with both CULS and Texans were guilty of, among other things, breach of contract and orchestrating "a loan Ponzi scheme," Texans said.
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