Paul Teutul of Orange County Choppers In Tussle With Bankers
Orange County Choppers owner Paul Teutul Sr., says he’s ready to move negotiations with his business lender, which filed foreclosure proceedings against the headquarters of his famous motorcycle shop, Orange County Choppers.
The dispute centers on the shop’s headquarters in Town of Newburgh, New York.
GE Commercial Finance Business Property Corp. filed the suit and says Teutul holds two mortgages for the business. One of those notes for a total of $11 million and the other for $1.5 million.
GE Commercial claims Teutul and his company missed mortgage payments of $96,000 and $14,000 for July.
Richard Mahon, attorney for OCC, said that Teutul withheld the payments to pressure the lender into renegotiating his loans. The attorney added that the OCC corporate headquarters was valued at $12 million when it was built in 2007, but market forces have now driven the price down to somewhere between $7 million and $8 million.
“We believe the parties will reach a resolution and the headquarters will continue in this location,” Mahon said.
Mahon said he expects talks will be renewed quickly and that the elder Teutul has plenty of assets.
He added that he doubts the bank will seize the property due to it’s very specific use.