SCHAUMBERG, Ill. – While it appears that United Resources Corporate FCU will not reach its capital raising goal [Credit Union Journal online, Aug. 11], Alloya Corporate CU is confident it will hit its target.
The latest numbers for Alloya, which is spinning off from Members United Bridge Corporate, is $53 million as of Aug. 10. Add in $6 million in formally committed capital paperwork in transit, and Alloya is now at 84% of its $70-million target with just under three weeks to go, reported John Fiore, chair of the advisory council and charter advisory group that are creating the new corporate. “We are confident we will get there, and we still have a few weeks left.”
Credit Union Journal previously reported that several sources have indicated that United Resources is telling credit unions that its bid to capitalize will fail. Sources indicated that as of last week United Resources had raised $52.491 million toward its $200-million goal, which carries an Aug. 31 deadline.
Fiore, also CEO of $760-million Motorola Employees CU here, said he feels bad for United Resources “because they are working hard and I know how hard it is to do this capital raise. But if they do fail we are here, we are available, and we feel comfortable that we can take on a large influx of new members. We proved that at end of 2010 when we took in the membership of Constitution Corporate in just 90 days.”
Last week Georgia Corporate FCU and Southwest Bridge Corporate FCU, which plan to merge and form Catalyst Corporate, reported they have transferred members’ pledged Perpetual Contributed Capital into escrow, a sign the planned merger will “succeed,” the corporates said. To date, approximately 74% of the previous capital shareholders of the two corporates have come on board as capitalizing members of Catalyst Corporate, the two corporates reported.
