Auraria Student Lofts exclusivity extension motion draws objection

By Sarah Lizee

Olympia, Wash., Oct. 24 – 5280 Auraria, LLC’s motion seeking a 120-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan drew an objection on Friday from senior lender DB Auraria LLC, according to court documents filed with the U.S. Bankruptcy Court for the District of Colorado.

As previously reported, the company, which does business as Auraria Student Lofts, asked the court to extend the plan filing period through Feb. 6 and the solicitation period through April 6, 2023.

The company said the primary driver for its bankruptcy filing was a foreclosure proceeding in Denver, filed by the DB Auraria.

DB has also filed a motion for order lifting the automatic stay to foreclose on the property.

The company said the extension is necessary because it has spent significant time defending against DB Auraria.

However, the secured lender argued that a single asset real estate case ordinarily shouldn’t need more than 120 days of exclusivity before a plan is filed.

Also, the debtor filed its plan, so no further extension is needed, DB Auraria said.

The senior lender also said that since both the debtor and DB Auraria agree that the debtor’s property should be sold, both sides should be permitted to offer competing solutions to sell the property through a plan.

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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