Lenders say they’re owed more than $500 million…“The lending group has been forced into the unfortunate action of foreclosing against Snowmass Base Village. The lending group has been engaged in negotiations with the borrower for more than a year. During that time, the lending group continued to fund the loan in order for the Viceroy Hotel to be completed and to operate, as well as for the asset to be fundamentally maintained. The borrower, however, has not fulfilled its obligations and is clearly in default.”
ASPEN REAL ESTATE — The Base Village in Snowmass faces the threat of foreclosure after lenders filed court papers Thursday to take control of the property. Hypo Real Estate Capital Corp. of New York, along with three other banks, alleges that Base Village Owner LLC, controlled by Related WestPac, has defaulted on loan notes and owes $386 million in principal payments and unpaid interest, and another $48.5 million for other loan-related expenses. The loans total $520 million, according to court documents. Related officials declined comment. Along with the foreclosure action, the lenders filed a complaint in Pitkin County District Court aiming to put the property into receivership, which would entail an outside, neutral party managing the financial aspects and operations of Base Village, including the Viceroy Hotel, which opened in November.A hearing is set for today in Pitkin County District Court, where Judge Gail Nicholas will decide whether to appoint a receiver.
By Rick Carroll, July 9, 2010, Aspen Times