OCC In Tussle With Bankers
Orange County Choppers owner Paul Teutul Sr., is hoping to jumpstart negotiations with his business lender, which filed foreclosure proceedings against the shop’s new headquarters in the Town of Newburgh in New York.
A court filing by GE Commercial Finance Business Property Corp. says Teutul holds two mortgages for the business, one for $11 million and one for $1.5 million. The company claims he missed mortgage payments of $96,400 and $14,000 for July.
OCC lawyer Richard Mahon told the Times Herald-Record that Teutul withheld the payments to pressure the lender into renegotiating his loans. Mahon says the headquarters was valued at $12 million when it was built in 2007, but is now worth between $7 million and $8 million due to the soft economy.
“This is just a bump in the road,” Mahon told the newspaper. “We believe the parties will reach a resolution and the headquarters will continue in this location.”
Mahon expects to renew talks. He says Teutul has plenty of assets and he doubts the bank will seize a property with such a specific use.