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ASPEN – District Judge Gail Nichols on Friday put the Base Village at Snowmass project into receivership as part of a court action spurred by four lenders.
The transition into receivership (when an outside party manages the operations and finances of a disputed entity) will take effect Monday, said Jim DeFrancia, spokesman for the receiver, James Pavisha of Denver.
The receivership comes after Hypo Real Estate Capital Corp. of New York, along with three other lenders, filed a court complaint Thursday in Pitkin County District Court. The lenders claim that Base Village, controlled by Related WestPac of New York, owes $386 million on a loan, as well as $48.5 million in other loan-related expenses.
The lenders also are trying to foreclose on the 400,000-square-foot property, which includes the Viceroy Hotel.
Related issued a statement Friday saying that it is "steadfastly committed to Snowmass and has gone to great lengths to stabilize all of its assets, as well as its partners and former partners assets, in an extremely volatile economic environment.
"It is unfortunate that after over a yearıs worth of dialogue, discussions have reached a standstill and the lenders have sought to commence a foreclosure process against the Base Village partnership, of which Related is a member. We are currently reviewing all of our legal options as it relates to the filings."
Snowmass voters approved the Base Village development in February 2005. It was originally slated to be 1 million square feet, but construction financing dried up in 2008. Approximately 400,000 square feet has been built thus far, according to Steve Alldredge, spokesman for Related WestPac.
The transition into receivership (when an outside party manages the operations and finances of a disputed entity) will take effect Monday, said Jim DeFrancia, spokesman for the receiver, James Pavisha of Denver.
The receivership comes after Hypo Real Estate Capital Corp. of New York, along with three other lenders, filed a court complaint Thursday in Pitkin County District Court. The lenders claim that Base Village, controlled by Related WestPac of New York, owes $386 million on a loan, as well as $48.5 million in other loan-related expenses.
The lenders also are trying to foreclose on the 400,000-square-foot property, which includes the Viceroy Hotel.
Related issued a statement Friday saying that it is "steadfastly committed to Snowmass and has gone to great lengths to stabilize all of its assets, as well as its partners and former partners assets, in an extremely volatile economic environment.
"It is unfortunate that after over a yearıs worth of dialogue, discussions have reached a standstill and the lenders have sought to commence a foreclosure process against the Base Village partnership, of which Related is a member. We are currently reviewing all of our legal options as it relates to the filings."
Snowmass voters approved the Base Village development in February 2005. It was originally slated to be 1 million square feet, but construction financing dried up in 2008. Approximately 400,000 square feet has been built thus far, according to Steve Alldredge, spokesman for Related WestPac.
