The Aspen Club & Spa’s plan to emerge from chapter 11 bankruptcy by obtaining $140 million in exit financing is drawing opposition from the Colorado Bankers Association (CBA), which represents more than 95 percent of all banks in the state, the Aspen Times reported. 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 fitness club’s request for the funding to satisfy $26.8 million in mechanics’ liens and resume construction on its delayed redevelopment project. The Aspen Club & Spa’s legal team responded on Tuesday with its own brief claiming the CBA’s argument — which it made in the form of an amicus curiae, or friend-of-the-court brief — is unripe because it is based on conclusions the bankruptcy judge overseeing its case has yet to approve the exit loan proposal. The CBA’s brief, in the meantime, argued The Aspen Club’s reorganization plan will potentially damage creditors who have existing secured loans on its property at 1450 Ute Ave., while setting a precedent that could impact commercial lenders industry-wide.
