Restaurant Caught In Battle Of CU Loans Gone Bad
BATTLE CREEK, Mich. – Kellogg Community FCU has asked a court to order the sale of a local restaurant to help pay off debts owed by a city commissioner.
The restaurant has been under the management of a court-appointed receiver since August in an effort to make it profitable and pay the millions of dollars in defaulted debts City Commissioner Bill Morris and his wife owe to the credit union. The credit union is seeking payment on more than $3.6 million in outstanding debts plus interest and attorneys fees, according to court records.
Court records indicated the credit union fears the tax debts will prompt authorities to close the Hunt Club restaurant and it would lose collateral on its loans.
The politico took out a $1.5 million loan from the credit union in August 2009. Payments on the loan stopped the following December, one month after Bill Morris was elected to the Battle Creek City Commission as an at-large member.