RICHARDSON, Texas – Texans CU and its once high-flying business lending CUSO have been hit by another bankruptcy in a high-profile development collateralized by one of its member business loans.
The Chapter 11 filing of The Harbor in Rockwall shows that Texans’ MBL CUSO, now known as CU Liquidity Services LLC, is on the hook for a $28.2 million loan. The Harbor, which is owned by Mariah Bay Leasing Co., is a mixed-use development on the shore of Lake Ray Hubbard, which is just outside Dallas.
The latest bankruptcy comes while the MBL CUSO is engaged in several high-stakes battles, including the bankruptcy of a Chicago-area shopping mall it financed and the firing of the former president of Texans’ insurance CUSO, soon after the credit union bought the operation from him. In the first case, the U.S. Bankruptcy Court in Dallas awarded the credit union a $40 million settlement. In the second, the credit union was ordered to pay $21 million.
In the bankruptcy filing for the Rockwall project, Mariah Bay listed $42.9 million in assets, most of that Phase I of The Harbor, which was valued at $42 million. About $29 million in liabilities are listed, most of those being the $28 million mortgage with Texans.
The filing also shows the company holds almost $200,000 in cash in two separate accounts with the credit union.
