Both sides recently filed written closing arguments in the U.S. Bankruptcy Court in Denver concerning the fate of the project, which was originally billed as a two-phase development. Only the first phase, located at the corner of Monarch Street and Durant Avenue, has been completed. It continues to operate. Construction on he second phase, at the old Chart House location, came to a halt last year when the project’s financing dried up.
ASPEN REAL ESTATE — A federal bankruptcy trustee will soon decide the direction of the Dancing Bear fractional-ownership development, an Aspen project that seemingly mirrors the struggles faced by developers during the national credit crunch.The owner of the Dancing Bear fractional ownership development, with the support of four creditors, is fighting to reorganize its debts in Chapter 11 bankruptcy, while two of the project’s key lenders have it eyed for foreclosure.The two lenders claim that the involuntary bankruptcy by DB Capitol Holdings, the Aspen-based owner of the project, was done in bad faith and lacks any credible reorganization plan. DB Capitol, however, has argued that the two lenders are playing hardball because “they want the project.”The arguments come after DB Capitol Holdings went bankrupt earlier this year, but a trustee dismissed the Chapter 11 plan on June 21.
By Rick Carroll, Oct. 23, 2010 Aspen Times