DENVER — Amidst fresh reviews of subprime portfolios, credit unions across the U.S. that hold Centrix Financial indirect auto loans were watching developments here this week as a U.S. Bankruptcy Court began formal proceedings on Centrix' Chapter 11 petition as well as a separate involuntary petition from unsecured CU creditors.
"Who could not be worried how this will all turn out and how steep our losses might be?" voiced one CEO of a Midwest CU who asked for anonymity.
Still others among the estimated 230 CUs with exposure said that while "Chapter 11 is always a concern," as one put it, they felt comforted that the beleaguered indirect lender was servicing portfolios routinely as directed last month by a Reno, Nev. bankruptcy judge.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
- Educational webcasts, white papers, and ebooks from industry thought leaders.
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
