ASPEN REAL ESTATE – Both phases of the Dancing Bear fractional ownership club development have been placed in receivership due to $58 million in overdue loan payments owed to a German bank.The order, signed Friday evening by District Court Judge Gail Nichols, appoints James DeFrancia of Aspen and his Western Capital Corporation as receivers for the luxury lodging property and the neighboring stalled construction site on Monarch Street in downtown Aspen.Project developer Tom Divenere said he was shocked to learn about the order late Friday. He said he continues to work with the bank — WestLB of Dusseldorf, Germany — and has been in restructuring talks with the bank for the last year.“This is a rash move by dysfunctional bank with no reason to do this other than to show they could,” Divenere said. If it wasn’t for the economic downturn which led to the construction delays on the second phase, the bank would have its money, Divenere said, adding that the legal issues spring from an overzealous law firm in Los Angeles working on behalf of a division of the bank he has little contact with.
By Curtis Wackerle, March 13, 2010 Aspen Daily News

Link to article