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.