RICHARDSON, Texas-Texans CU filed a Chapter 11 bankruptcy petition for its Texans CUSO Insurance Group unit, because of a $6- million judgement against it by the company's former owner.
The petition refers to legal judgments against the insurance company, acquired by the credit union in 2007 from Kevin Curley. Curley, who was fired from the business four months after the deal, sued the CU for wrongful termination and won a $6.3-million verdict earlier this year. Another CUSO owned by Texans, known as Credit Union Liquidity Services, is in litigation over a $38.9-million loan it made to renovate a Chicago-area shopping mall which is currently in default. A bankruptcy filing in that case indicates Texans expects to lose more than $12 million on the loan.
Texans officials declined to comment, referring to a prepared statement issued in the name of the credit union's CEO Michael Sauer, saying, "It is important to note that the policyholders of Texans CUSO Insurance Group, LLC will not be affected by the filing," he said.
