Earlier this week Hagerstown, Md., disaster recovery CUSOOngoing Operations faced its own disaster – a possible forced assetsale demanded by a secured creditor that could have wiped out theCUSO.

But the threats have been averted, said Board Chairman BrunoSementilli, who also serves as CEO of $782 million Quorum FederalCredit Union in Purchase, N.Y.

Also Read: Ongoing Operations Hurdles Financial Struggle

“We are glad this now is behind us,” said Sementilli, whoindicated “the board has been intensely wrestling with this forseveral weeks, but we have been able to work out something with thecreditor.”

Steve Gubner, a Woodland Hills, Calif., lawyer for the creditor,Clearsky Holdings, told Credit Union Times that the forcedasset sale – originally scheduled for Oct. 31 – “has beenpostponed.”

He elaborated that he thought the sale would never be held.“Hopefully we can put this to bed,” Gubner said, indicating aresolution was at hand. The debt involved notes the CUSO hadassumed when it bought the Cloudworks hosting operation in 2011.

At $2.6 billion Northwest Federal Credit Union in Herndon, Va.,one of Ongoing Operations' founding credit unions, CEO ChrisMcDonald said Thursday he was “disappointed” that matters hadreached the place they did but, he stressed, “I still think OngoingOperations is headed in the right direction.”

McDonald added, “We are not looking for alternatives. We plan tostay put in Ongoing Operations.”

Looking ahead, Sementilli acknowledged that Ongoing Operations –which has grown to serve 500 clients – will have to work “to bringback confidence that may have been lost.”

He added that, in his view, the CUSO's business fundamentalsremain sound – “the business will grow” – and, therefore, there maybe cash flow needs that could require additional investments fromOngoing Operations' credit union owners.

“The investors are open to hearing about those needs,” saidSementilli.