Telesis Community Credit Union in Chatsworth, Calif. is continuing its recovery efforts on several out of state commercial real estate property loans that are in default.
The latest involves a Tennessee office building foreclosed on by Telesis five months after the developer defaulted on a $3 million loan. The $416 million credit union recently filed a second foreclosure notice on the property.
According to published reports, the Memphis Center City Revenue Finance Corp. is the owner of a mixed-use office building that houses several media publications. The $3 million loan was dated Dec. 7, 2007. Robert G. Williams, the principal, filed for bankruptcy a month after Telesis foreclosed on the property. The property is set for sale Dec. 27.
The Memphis Daily News recently reported Williams saying, "It's in the hand of the lawyers and I do not have anything new to add other than our wonderful world of lawyers-of which we have as many in Shelby County as they do of the country of France-I'm sure they're handling it to the best of their abilities."
Telesis was not available for comment.
Telesis continues to recoup money the credit union said it is owed from defaulted loans. In November 2009, the $416 million credit union and the CUSO it founded, Business Partners LLC, filed a breach of contract against the owners of an Orlando shopping mall after the owners filed for bankruptcy.
The credit union said it was not likely to be acquired through foreclosure because the borrower was actively working on a resolution. The Florida retail property has 13 credit union participants, including Telesis, the lead lender.
Since at least last year, Telesis had also been working to settle a $6.8 million Oregon property loan for an office building. The case was placed in bankruptcy court. In November, the credit union told Credit Union Times the borrower has proposed a plan of reorganization and that process is nearing its conclusion.
Telesis said the guarantor on the Oregon loan also successfully navigated the bankruptcy process for another commercial real estate loan that provided favorable results for all parties without a loss to the lender group.