DENVER — The financial troubles of Centrix Financial, the indirect lender of subprime loans, culminated last week in a Chapter 11 bankruptcy filing in a Reno, Nev. court coming less than two weeks after the once high flying firm announced its sale to an East Coast investor group, which included its CEO, Robert Sutton.
The filing in Nevada comes amidst a fast-moving series of legal developments including a separate involuntary petition against Centrix brought by three large creditors, two of which are units of large banks. That petition seeks $3.4 million in unpaid claims.
Despite its mounting problems, Centrix officials insisted "nothing has changed and we will continue servicing" the firm's 250 client CUs spread across the country. The firm has said since 1998 it has underwritten $4 billion of outstanding loans with CUs and banks.
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