Brooke trustee settles USB loan participation claim for $1.37 million

By Caroline Salls

Pittsburgh, May 25 – Brooke Corp.’s Chapter 7 trustee requested court approval of a $1.37 million compromise reached with Union State Bank (USB), according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Kansas.

Trustee Christopher J. Redmond said several loan participants filed a single proof of claim against Brooke in April 2009 in the amount of $8.96 million in connection with an $11.5 million loan the company entered with Brooke Credit Corp.

The trustee said he is working individually with each participant to resolve their claims.

The proposed compromise settles USB’s portion of the loan participants’ claim.

Based in Overland Park, Kan., Brooke is a holding company for insurance and banking services distribution companies. The company filed for bankruptcy on Oct. 28, 2008, and its Chapter 11 case number is 08-22786.

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