Search
 

Conditional Centrix Sale Approved by Court; Sutton to Retain Some Ownership but Have No Operational Position

Credit unions with Centrix Financial subprime loans in their portfolio were hopeful last week that a bankruptcy court's tentative approval of the company's sale might improve service performance. "The final changes made in the settlement appear to alter service agreement terms and for some credit unions that might prove helpful...

By Jim Rubenstein | Updated on January 30, 2007

DENVER — Credit unions with Centrix Financial subprime loans in their portfolio were hopeful last week that a bankruptcy court’s tentative approval of the company’s sale might improve service performance. “The final changes made in the settlement appear to alter service agreement terms and for some credit unions that might prove helpful and for others it could be worse,” projected one West Coast CEO whose CU has sharply reduced its subprime holdings. The key, he said, is whether the new East Coast investment firm, Kendrick CF Acquisitions, buying Centrix could upgrade service, which some CUs have questioned in light of the NCUA fallout.

However, at a hearing last week U.S. Federal Bankruptcy Judge Elizabeth E. Brown approved the sale to Kendrick on condition that CU interests approve final terms, a development attorneys expect prior to a final Feb. 1 ruling.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.