Auraria Student Lofts disclosure statement draws trustee objection

By Sarah Lizee

Olympia, Wash., Nov. 28 – The U.S. trustee overseeing 5280 Auraria, LLC, which does business as Auraria Student Lofts, objected to the debtor’s disclosure statement for its Chapter 11 plan on Wednesday, according to documents filed with the U.S. Bankruptcy Court for the District of Colorado.

Patrick S. Layng, the U.S. trustee for Region 19, said the disclosure statement doesn’t provide enough information.

Specifically, Layng said the documents should provide financial projections for the time period after plan confirmation to the date of anticipated sale of the student lofts, the debtor’s primary asset.

It should also attach the most recent monthly operating report, he said.

And, it should be updated to reflect potential approval of the debtor’s proposed debtor-in-possession loan, as well as to discuss the debtor’s objection to DB Auraria, LLC’s proof of claim and the potential impact on the waterfall recovery under the plan, Layng added.

A hearing on approval of the disclosure statement is slated for Nov. 30.

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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