The owner of the Nativ Hotel building in downtown Denver has filed for Chapter 11 bankruptcy in an attempt to slow the foreclosure process – and a nightclub operator currently facing the heat of the city wants to move in.
KDA Properties LLC said in its Wednesday filing that it owed four creditors $ 9.61 million.
Most of the money – $ 8.07 million – is owed to Chicago-based Pangea Mortgage Capital. The claim is secured by the four-story building that Nativ occupies at 1612 Wazee St., as well as other assets. Pangea did not respond to a request for comment.
“We recently intended to vacate the property, but we will be leaving our way,” said Amin Suliaman, co-owner of the Nativ hotel. “I’m not going to let them intimidate us off the property. ”
Businesses use Chapter 11 bankruptcy protection to reorganize themselves and help keep the business alive, paying creditors over time.
Suliaman told BusinessDen on how to file bankruptcy filing related only to the company’s real estate. He said the 14-room hotel and adjoining nightclub are run by a different entity which has not filed for bankruptcy.
Pangea Mortgage Capital began the process of foreclosing on the hotel building in December 2020, according to the Denver Office of the Public Trustee. Suliaman said the company was about to receive its PPP funds in January and was “blinded”.
An auction of the property was originally scheduled for May, but has been repeatedly postponed. Suliaman said the lender has not set an official date because the company has made its monthly mortgage payment of $ 56,000.
“It gives us the opportunity to reconcile with a neutral third party in bankruptcy court and forces our lender to look into the plan in place that we need to leave,” Suliaman said. “It brings us back to a level playing field.”
Weinman & Associates attorney Jeffrey Weinman represents Nativ in bankruptcy proceedings.