WEST ALLIS, Wis. – Less than a month after filing for bankruptcy, an auto leaser partially owned by Central State Mortgage Co. founder Richard Jungen has asked the bankruptcy court to dismiss the case at the behest of three credit unions it owes more than $2 million.
In a court filing, CU Fleet said it believes that because of the declining economy it would be in the best interest of the credit unions, Landmark CU, Guardian CU and Prime Financial CU to remove the case from the bankruptcy court.
Jungen, who was fired as CEO from Central States Mortgage last July, is half-owned of CU Fleet, which provided leased autos through several credit unions, including the three credit unions, which are secured creditors.
Jungen and Tom Burns, the other owner, bought CU Fleet from Central States Mortgage last summer.
Central States Mortgage acquired CU Fleet in October 2004 to lease vehicles to credit union members in Wisconsin. Under the arrangement, CU Fleet would purchase the vehicle and lease it to the credit union member. At the expiration of the lease, the company would accept the vehicle back and sell it.
Central States Mortgage, which once provided mortgage services to 250 credit unions, is currently in receivership and is in the process of being liquidated.
