Auraria Student Lofts’ disclosure statement provokes objections

Chicago, July 7 – 5280 Auraria, LLC, which does business as Auraria Student Lofts, had its disclosure statement relating to its second amended plan objected to by senior lender DB Auraria and U.S. trustee Patrick S. Layng, according to filings with the U.S. Bankruptcy Court for the District of Colorado.

Both objections basically lodge the same complaint: the disclosure statement lacks adequate information to allow creditors to make an informed judgement about the second amended plan.

The lender is saying that the deficiencies should be dealt with long before the plan confirmation hearing to avoid expenses later.

The case is a single-asset real estate case and one of the main deficiencies of the disclosure statement is that it lacks information about the worth of the debtor’s property at a potential confirmation, after renovations and post-Covid and, further, what would be the value if the property were held for an additional 18 months?

The trustee highlighted many details of logistical deficiencies in the plan, such as omissions relating to a waterfall recover and treatment of class 3 unsecured creditors, as examples of a long list of needed amendments.

Objections were due July 7.

The San Clemente, Calif.-based company provides student housing in Denver. The company filed bankruptcy on June 9, 2022 under Chapter 11 case number 22-12059.

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