USA Capital Negotiates Deal
GlobeSt.com is reporting that USA Commercial Mortgage Company (d/b/a USACapital), a provider of short-term and permanent financing to homebuilders, commercial developers and apartment owners, has reached an agreement with USA Investment Partners LLC regarding its $58.4-million obligation to USA Commercial Mortgage. The company has filed a motion seeking approval of the agreement by the nankruptcy court. A hearing will occur on June 21, 2006.
Since filing for bankruptcy protection, USA Commercial Mortgage has proceeded to collect $48.3 million in principal from performing and non-performing loans, as well as $8.6 million in previously uncollected interest payments. Additionally, USA Commercial Mortgage received bankruptcy court approval earlier in the month to return funds held in escrow for its Bundy Canyon $8.9 million loan which was never funded. The funds will be returned this week to the 117 investors.
The company hopes to also receive approval from the bankruptcy court to begin paying investors again based on the amounts they have collected to date. A hearing for that motion is set for July 25th.