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.

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