DALLAS – Texans CU has appealed a $21 million bankruptcy court estimation of claims for its Texans Insurance Group CUSO to the U.S. District Court, one of a number of ongoing battles the Texas credit union giant is fighting in the courts.
The $21 million bankruptcy claim was set by the court for Kevin Curley, who was fired four months after he sold his insurance company to the credit union in 2007. The bankruptcy court judge ruled that Curley’s claim should include lost profits, attorney’s fees and back pay.
Under the procedures for the Chapter 11 bankruptcy, where the CUSO has been since last year, he will receive his pro-rata share of the distribution, if any, that is made to all unsecured creditors, unless there is a mutual agreement that is approved by the court.
Texans, which has been struggling with big losses the last two years, has been buffeted by claims and judgments in the same bankruptcy court – first by a $40 million judgment in its favor related to a failed member business loan financing the renovation of a Chicago-area shopping mall, and, more recently, by the bankruptcy of a residential and commercial development for which the credit union’s CUSO holds a $28 million mortgage.
The $1.6 billion credit union had a $51.6 million loss last year and a $44.4 million loss for 2008.
