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On the Web(1) Creditors have until Wednesday to file claim against mortgage company
By Sean F. Driscoll
BusinessRockford.com
Apr 03, 2009 @ 04:55 PM
- Tools:
Wednesday is the last day for Commercial Mortgage & Finance’s 1,400 creditors to file a claim against the bankrupt company, although not all of them need to.
Rockford attorney Brad Koch, who represents the creditors committee in the case, said filing a claim is only necessary if a creditor disputes how much Commercial Mortgage & Finance says they’re owed.
Checking the record
There are two ways to check how much Commercial Mortgage & Finance says you’re owed or your address on file.
Make a call.
Call the U.S. Bankruptcy Court clerk’s office at 815-987-4350.
Go online.
Use PACER, the pay-per-use federal case management system, to look at the court’s record. Register for an account at pacer.psc.uscourts.gov; payment can be made by check or credit card. Once you have an account, go to ecf.ilnb.uscourts.gov, log in and search for Commercial Mortgage & Finance’s case, 08-73242. Click on documents 115 and 116 to view the company’s financial schedules and check the figures listed for your claim.
“If you believe you’re owed $10,000 and ... there’s no indication they dispute that, then you don’t really need to file a claim,” he said. “If you believe you’re owed $15,000 and they have you in for $5,000, then you’d better file a claim for $15,000; otherwise, all the court has to go on is the company’s information.”
Creditors also should file a claim if the address in Commercial Mortgage’s records is not accurate.
To check how much the company says a creditor is owed or a creditor’s address, Koch recommended going to the pay-per-use federal case management system PACER or to call the local bankruptcy court office.
As of Feb. 12, 1,041 claims had been filed with the court, according to records from Garden City Group, the claims agent hired to manage the case’s paperwork.
Commercial Mortgage, which traces its roots to 1929, sold promissory notes to investors on six- or nine-month terms and offered higher interest rates than traditional certificates of deposit. Many investors bought multiple notes and continually rolled them over.
The company filed for Chapter 11 bankruptcy protection Oct. 8 because a rash of investors tried to cash out their notes. The investments were frozen and remain inaccessible to creditors. The average investor is owed about $50,000.
Koch said a plan is being developed with the company and the five-member creditors committee to liquidate the company. Although the plan is due April 20, Koch said he expects it will be filed with the court by the end of next week.
Commercial Mortgage & Finance Co. does not own CMF Insurance Agency of Rockford.
Reach staff writer Sean F. Driscoll at 815-987-1346 or sdriscoll@rrstar.com.
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