A bankruptcy court is scheduled to hear a case between the $1.2 billion Evangelical Christian Credit Union and Lehman Brothers Inc. on a foreclosed property in limbo as the investment firm revises its Chapter 11 bankruptcy plan.
Evangelical Christian in Brea, Calif., has filed a lift stay motion against Lehman regarding a $6.6 million matured loan secured by 22 acres in Riverside. The land is owned by Life Church of God in Christ. The credit union is contesting that even though the property was appraised for $2.38 million, Lehman's subordinate mortgage has no value.
At a May 18 hearing, ECCU planned to ask the bankruptcy court to revise the lift stay motion so that it can proceed with foreclosing on Lehman's subordinate mortgage and the church's ownership interest in the property.
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