Orange County Choppers - Bankruptcy Rumors!

According to a report published January 25, 2011 by USA Today...

A flurry of rumors flew around the Web today that the TV-famous Orange County Choppers was bankrupt.

Paul Teutel Sr.'s bike works has a long history of legal melodrama, including the nasty lawsuit between colorful Paul Sr. and Jr., as Junior went his own way. But the current posts making the rounds refer to a foreclosure lawsuit actually filed in November (according to a report here in OCC's hometown Newburgh, N.Y., newspaper here) by GE Capital, the lender for OCC's headquarters building.

According to the report, the bike works, like lots of homes, is underwater on its two mortgages. It missed payments in July, which OCC's lawyer told the Times-Herald Record was a ploy to get GE to renegotiate the $12.5 million in loans on a building he estimates now worth no more than $8 million.

OCC and GE apparently are playing chicken, but the lawyer, Richard Mahon, told the paper that OCC and Paul Sr., in November at least, were not broke.

To read the entire story, check out the article in USA Today.

Posted in Orange County Choppers Bankruptcy Rumors