USA Commercial Mortgage: Motion to Disburse
On Monday, Las Vegas-based USA Commercial Mortgage Company (USACM) filed a motion with the U.S. Bankruptcy Court requesting an order authorizing them to distribute certain funds held in USACM’s collection account to direct lenders, and authorizing the USA Capital Diversified Trust Deed Fund, LLC (the “Funds”) to further distribute certain funds to their respective fund members. Motion is scheduled to be heard on August 4th.
USACM had approximately $93 million in its collection account as of June 30, 2006, including about $14 million in interest collected post-petition on nonperforming loans and approximately $60 million collected post-petition in loan principal repayments. USACM had approximately $9 million in its loan servicing collection account as of April 12, 2006.
USACM suspended payments to all 3,600 direct lenders, and 3,200 fund members on April 13, 2006 when the company and its affiliates filed for reorganization under Chapter 11.