Former Texans CUSO CEO May Be Last in Line to Get Paid, If At All
Until creditors "holding a higher priority" are paid in full as Texans Insurance Group reorganizes under bankruptcy cover, it remains to be seen if the former CUSO's CEO will see any part of a $21 million order.
Texans Credit Union confirmed that is has filed an appeal of the $21 million "estimation order" and stood by a previous assertion that the money is not actually owed.
"The $21 million estimation determination is not a judgment. It is an estimation of the value of the unsecured claim of Kevin Curley for purposes of distribution in the TIG bankruptcy," Texans CU wrote in a statement. "The court's opinion on the estimation does not order Texans Insurance Group to pay Curley this amount of money."
Texans said "Mr. Curley will receive his pro-rata share of the distribution, if any, that is made to all unsecured creditors, unless there is a mutual agreement that is approved by the Bankruptcy Court. Until creditors holding a higher priority are paid in full, unsecured creditors receive nothing." With the exception of equity interests, an unsecured claim "has the lowest priority in the bankruptcy distribution scheme," Texans said.
The court's opinion only determines the amount of Curley's claim with respect to the TIG bankruptcy case and does not order that any of TIG's affiliates including Texans CU and Texans CUSO Partners LLC are liable to Curley, according to Texans.
Last week, Curley told Credit Union Times that "in light of the bankruptcy...we will be vigorously pursuing our claims."