West Galena Real Estate LLC, a Park City-based condominium developer that filed bankruptcy in Michigan, must move its case to Colorado to be closer to creditors, a federal judge ruled.
"The creditors who will be most impacted by the location of the bankruptcy case are trade creditors, the local taxing authorities, and creditors with mechanics liens," U.S. Bankruptcy Judge Marci McIvor in Detroit said in an opinion Tuesday. "These parties are in Colorado."
NAREP II US REIT Assets Holdings LLC, a lender with about $53 million in claims, asked to transfer the case, saying the company's business is in Colorado and Utah, not Michigan.
West Galena is developing hotel and condominium units near Telluride, Colo. The company filed bankruptcy in June to block a public foreclosure sale of some of its properties.