Plagued by litigation, liens and millions of dollars in lingering debts, The Aspen Club & Spa (Colo.) filed for chapter 11 protection yesterday in Denver, the Aspen Times reported. The move will allow the company to sort out its debts through the bankruptcy court while remaining solvent, said Michael Fox, Aspen Club president. The bankruptcy is the latest in a series of financial red flags for The Aspen Club & Spa, which embarked on a major redevelopment project at its 1450 Ute Ave. location in the spring of 2017. Work on the project — including a remodel of the 40,000-square-foot Aspen Club & Spa building, the construction of a 54,000-square-foot lodge with 20 timeshares, and 12 multi-family affordable-housing units — came to a near halt in August 2017 when subcontractors abandoned the site because they were owed money for labor and materials. With no more than $50,000 in assets, the company’s filing shows a litany of six-, seven- and eight-figure debts. The largest one, $33.9 million, is owed to GPIF Aspen Club LLC, which acquired a $45 million loan note from the original lender, FirstBank, in December 2017.
