The Aspen Club & Spa’s want to emerge from Chapter 11 bankruptcy by getting $140 million in exit financing is drawing opposition from the Colorado Bankers Association, which represents a lot more than 95% of all of the banking institutions when you look at the state.
The fitness club’s request for the funding to satisfy $26.8 million in mechanics’ liens and resume construction on its delayed redevelopment project in a filing made Jan. 24, the Bankers Association claimed a precedent will be set to the detriment of commercial lenders and borrowers if the bankruptcy court blesses.
The Aspen Club & Spa’s team that is legal Tuesday using its very own brief claiming the CBA’s argument — which it produced in the type of an amicus curiae, or friend-of-the-court brief — is hit website unripe since it is centered on conclusions the bankruptcy judge overseeing its situation has yet to accept the exit loan proposition.
The CBA’s brief, for the time being, argued The Aspen Club’s reorganization plan will possibly damage creditors that have current secured personal loans on its home at 1450 Ute Ave., while establishing a precedent that may affect lenders that are commercial.
“They regard this being a threat to lending that is secured which not just hurts the banking industry that the CBA represents, but can finally harm other borrowers too, ” lawyer Cynthia Lowery-Graber associated with the Denver branch of St. Read more