Trustee seeks dismissal of Old Snowmass home bankruptcy | AspenTimes.com

Trustee seeks dismissal of Old Snowmass home bankruptcy

It has been more than a year since an Old Snowmass home declared bankruptcy, and the case has moved so slowly that the trustee overseeing it wants it dismissed.

Bankruptcy trustee Patrick Layng filed a motion to dismiss the Chapter 11 earlier this month, because the debtor has yet to file a plan or reorganization that is satisfactory to the court. If the court doesn't dismiss the case, the trustee is asking it to set a deadline for a new plan of reorganization.

Flying W Snowmass LLC is the name of the entity that owns the 6,200-square-foot home, located on a 42.7-acre parcel at 50 N. River Road. The home, built in 2002, was intended to be an investment holding for Las Vegas resident P. Mark Weida, the controlling member of Flying W Snowmass LLC, according to court filings.

But on Nov. 4, 2014, Flying W Snowmass filed for Chapter 11 protection in the U.S. Bankruptcy Court in Denver. The bankruptcy came a day before a foreclosure auction was set for the property.

The trustee's motion to dismiss comes after the lender on the property, Owcwen Loan Services, filed an objection to Flying W Snowmass' reorganization plan in April.

But Flying W Snowmass hasn't filed a new plan for reorganization, the trustee noted in the motion to dismiss.

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In March, the trustee called into question a court filing by Flying W Snowmass asking that the property be listed for sale at $4.95 million. The trustee argued that the Pitkin County Assessor's Office gave the property an actual value of $2.66 million.

A judge is expected to hear arguments in the case this week.