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, the Aspen (Colo.) Times reported. Pitkin County (Colo.) District Judge Chris Seldin yesterday 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, Judge 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.
