Chapter 11 filing is latest maneuver in legal battle with lenders

ASPEN REAL ESTATE — The owners of the Dancing Bear Residences-Aspen development have filed for Chapter 11 bankruptcy protection in an effort to regain control of business operations that have been under the reins of a court-appointed receiver. The bankruptcy, listed under the name of Aspen-based DB Capital Holdings, was filed May 27 in U.S. District Court in Denver. Bankruptcy papers list DB Capital’s liabilities at more than $60 million, including nearly $56 million to Germany-based WestLB, the senior lender that financed most of the Durant Avenue project.The Chapter 11 filing would allow DB Capital to remain solvent while reorganizing its debts. It lists such debtors as California-based Cappello Capital Corp. ($750,000), Aspen law firm Klein, Cote & Edwards ($71,000), and professional golfer Fred Funk ($708,500), who also invested in the project.But on Thursday, Illinois-based Aspen HH Ventures, which injected $6 million into the project, entered a motion to
dismiss the bankruptcy, claiming it was filed “in bad faith.”
By Rick Carroll, June 4, 2010 Aspen Times

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