Well, our sensational friends in the media are falling for yet another ploy for ratings;
The following are two different news source quotes...
Just in case you needed further proof that the custom chopper craze is officially over, there’s word that Orange County Choppers, the Newburgh, NY custom bike builder is in foreclosure. Word is that the company defaulted on the July 2010 mortgage payment for their new (and over the top) headquarters, but a lawyer for OCC has a different perspective. The non-payment, it seems, was a strategic move to get the lender (GE Commercial Finance) to renegotiate the terms of the loan. When the new facility was built in 2007, it was valued at some $12 million; today, the property’s value has fallen to about $7.5 million.
The company has multiple loans with GE Commercial Finance, and their monthly nut for all loans is over $110,000. In the best of economic times, making that kind of payment would have been a stretch, but today that hardly seems possible. I’ve never been a fan of the prime time soap opera, and I’ve been critical of the rolling sculpture turned out by the Teutels on more than one occasion, but I wish them the best and hope they find a way to keep the doors open. Love them or hate them, OCC was the best thing to come along for Newburgh’s economy in a long, long time.
Orange County Choppers and GE Renegotiate Mortgage -- Trouble looming? Orange County Choppers in trouble? The company is trying to renegotiate mortgage. The company was founded by Paul Teutul, Sr. and Paul Teutul, Jr. in 1999.
Orange County Choppers has two mortgages through GE Commercial Finance Business Property Corp., one for $11 million and one for $1.5 million. The foreclosure action claims that the Choppers missed mortgage payments of approximately $96,400 and $14,000 due on July 1. The Choppers stopped making mortgage payments in order to put pressure on the lender to modify the terms of the loans.
Mahon said that when the headquarters was built in 2007, it was valued at about $12 million. Because of the economic downturn, the building is now worth between $7 million and $8 million, he estimated. "This is just a bump in the road," Mahon said. "We believe the parties will reach a resolution and the headquarters will continue in this location."
GE Commercial Finance spokesman John Oliver declined to answer questions about the suit, citing confidentiality. "We worked very hard to try to come up with a better outcome, but in the end we had to make a business decision based on our agreement, and we did," he said. The Orange County Industrial Development Agency is also named as a defendant in the action.
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Topic: OCC Foreclosure (Read 4131 times)