Colorado Bankers Association opposes Aspen Club bankruptcy exit plan

The Aspen Club & Spa’s want to emerge from Chapter 11 bankruptcy by getting $140 million in exit funding is drawing opposition through the Colorado Bankers Association, which represents a lot more than 95% of most banking institutions when you look at the state.

The fitness club’s request for the funding to satisfy $26.8 million in mechanics’ liens and resume construction on its delayed redevelopment project in a filing made Jan. 24, the Bankers Association claimed a precedent will be set to the detriment of commercial lenders and borrowers if the bankruptcy court blesses.

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