Evangelical Christian CU Gets Its Day In Court On Lehman Brothers Claim
NEW YORK – While creditors continue to sift through billions of dollars in claims in the Lehman Brothers bankruptcy, Evangelical Christian CU is asking the U.S. Bankruptcy Court for an order that will allow it to sell a valuable California real estate parcel that is on hold because of the huge bankruptcy.
The court has set a May 18 hearing a so- called lift stay motion that would allow the $1 billion Brea, Calif., credit union to foreclose on a $6.6 million matured loan secured by a parcel of 22 acres in Riverside, Calif., owned by the Life Church of God in Christ.
The credit union says the property was appraised for $2.38 million. Consequently, the credit union says Lehman’s subordinate mortgage has no value.
The credit union, one of the largest church lenders in the country, has asked the bankruptcy court to modify the so-called automatic stay so it can foreclose both the church’s ownership interest and Lehman’s subordinate mortgage.