Viceroy Buyers Target Base Village Lender Hypo in Lawsuit, ADN

ASPEN REAL ESTATE - Attorneys for buyers of luxury condos at the Viceroy hotel who are now seeking the return of $13 million in deposits have filed a motion in Pitkin County District Court naming Hypo Real Estate Capital Corp., a subsidiary of a nationalized German bank, as a defendant in their lawsuit.Hypo provided a $520 million construction loan to Base Village Owner, LCC, a subsidiary of the Related Companies of New York. Now Hypo and Related have sued each other over the loan gone wrong, and Hypo has foreclosed on the stalled Base Village project.The lawsuits between Hypo and Related have produced documents that attorneys for the Viceroy condo-hotel have used to claim that Hypo, as the construction lender, had a high level of control over the Base Village project and the sale of the Viceroy condos.
By Brent Gardner-Smith, Dec. 23, 10 Aspen Daily News

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