The Aspen Club and Spa’s debts to construction firms, lenders and other creditors, as well as the recent foreclosure action taken against it, will be consolidated into a single case overseen by a state district judge.

Pitkin County District Judge Chris Seldin on Monday ordered that the outstanding cases, which had been on hold because of the club’s bankruptcy, be folded in with the foreclosure case. Judge Denise Lynch will preside over the case moving forward, Seldin said.

Attorneys for the majority of creditors attending the conference call agreed that consolidation would help simplify an indisputably complex matter where there are more than $25 million in mechanics’ liens the club still owes, as well as $42 million owed to one note holder, GPIF Aspen Club LLC, and $12 million to another, Revere High Yield Fund, among other creditors.

Aspen Club declared Chapter 11 in May 2019, effectively staying a case carried against it by mechanics’ lien-holders with claims for labor and material related to the Aspen Club’s redevelopment project.

Unable to get the Denver bankruptcy court’s approval for a $140 million exit loan, the Aspen Club gave up on the bankruptcy proceedings earlier this month, agreeing with its creditors to dismiss the case Sept. 1.

On Sept. 2, GPIF took foreclosure action against the club in Pitkin County District Court.

With Seldin’s ruling, the foreclosure case as well as previous litigation in district court against the club are now folded into once case.

In the fall of 2017, most construction firms withdrew from the Aspen Club’s project site because they hadn’t been paid. Left behind was an incomplete site with 15 of its townhomes between 60% and 80% complete, six condominiums 30% complete, and the commercial component 30% complete, according to filings in the bankruptcy case.

The property has rights for the remodel of the 40,000-square-foot Aspen Club and Spa building, the construction of a 54,000-square-foot lodge with 20 timeshares, and 12 multi-family affordable-housing units.

rcarroll@aspentimes.com



Source Google News