Auraria Student Lofts files Chapter 11 plan and disclosure statement

By Sarah Lizee

Olympia, Wash., Oct. 18 – 5280 Auraria, LLC, which does business as Auraria Student Lofts, filed a Chapter 11 plan and related disclosure statement Monday in the U.S. Bankruptcy Court for the District of Colorado.

The plan provides for the renovation and sale of the principal asset of the debtor, the Auraria Student Lofts in Denver. Once the assets have been liquidated, the debtor will distribute the net proceeds to creditors.

According to the disclosure statement, administrative claims will be paid in full.

Tax claims will be paid on the effective date or in monthly payments for up to five years with interest.

The debtor-in-possession lender will receive cash equal to the allowed amount of its claim.

Class 1 consists of the asserted secured claims against the debtor held by SNR Contractors & Associates, RediCarpet Sales of Colorado, Inc., 14th Street General Improvement District (GID), Fortress Credit Corp., Auraria Stub LLC, and any other secured Claims, to the extent that there are any.

Each separate holder of a class 1 claim will be deemed its own class for purposes of voting on the plan.

The class 1.a, 1.b, 1.c and 1.d claims are impaired. Each holder will retain its lien securing its claim to the same extent and with the same priority as its pre-petition lien and shall be paid from net sale proceeds upon the closing of the sale in line with a waterfall recovery. Each claim will accrue interest from and after the effective date at the rate of 5.25% per year. Each class 1.a claim will be paid on or before Aug. 31, 2023.

Class 1.e claims consists of any other secured claims, to the extent that there are any. This class is impaired. The debtor is not aware of any other secured claims, but, to the extent there are any, including any tax liens, each holder will retain its lien securing its claim to the same extent and with the same priority as its prepetition lien and will be paid from net sale proceeds upon the closing of the sale in line with the waterfall recovery.

Holders of priority security deposit claims will be paid in full on or before 45 days after the effective date.

Holders of other general unsecured claims will be paid from net sale proceeds upon closing of the sale in line with the waterfall recovery.

Class 4 consists of the prepetition member interest of Nelson Partners, as the sole member and manager of the debtor. Unless and until all allowed claims of a higher priority are paid in full, the holder will receive no rights in respect of its ownership in the debtor. If the allowed unsecured claims are paid in full, this class will be paid the remaining net sale proceeds.

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

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