Sterling's Homepage For Receivership Actions
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CHEESMAN PARK VILLAS, 3700 NORTH GAYLORD STREET, 3701 NORTH YORK STREET, AND 3749 NORTH YORK STREET, DENVER, COLORADO
601-609 NORTH LIPAN STREET, DENVER, COLORADO
The City of Denver brought administrative actions against the owner of the properties ("Properties") located at 3700 North Gaylord Street, 3701 North York Street, and 3749 North York Street, Denver, Colorado ("Cheesman Park Villas") and 601-609 North Lipan Street, Denver, Colorado ("Lipan Properties"). Following Judgments in the administrative actions, the City of Denver filed suit against the owners in Civil Action No. 2015CV30918, Denver District Court, then filed a motion for the appointment of a receiver over the Properties. On April 15, 2016, the District Court entered its Order Appointing Receiver appointing Sterling Consulting Corporation receiver over the Properties and certain rights associated with the Properties. The Cheesman Park Villas Property is comprised of seven, four-unit residential buildings. Each unit is about 560± square feet. All are derelict, abandoned, and boarded up. The real estate is comprised of 89,000± square feet situated between 37th Avenue and 38th Avenue, and between Gaylord Street and York Street. The Property is the entire block except the four units and property at 3735 North York Street. The Cheesman Park Property is zoned URH (Urban Row House). The Lipan Property is comprised of a derelict and abandoned 4,517± square foot building situated on 12,540 square feet of land zoned IA. Both Properties are in highly desirable areas of the City of Denver. It is likely that the receiver will conduct a receiver’s judicial sale of the Properties and distribute the proceeds to the various claimants against the Properties as Instructed by the District Court.View Cheesman
Litigants in Civil Action No. 2015CV31023, Douglas County District Court agreed to file a motion to appoint a receiver over certain real estate and appurtenant water rights ("Property") situated near Franktown in Douglas County, Colorado. In this Receivership Action, the Douglas District Court appointed Sterling as receiver to preserve the Property while the District Court resolved the various disputes among the litigants and established the amount and priority of the litigants claims against the Property. It is likely that the receiver will conduct a receiver’s judicial sale of the Property, and hold the proceeds from the sale pending the resolution of claims against the Property. The real estate that comprises the Property is 106 ± acres of agricultural land situated on both side of Cherry Creek at Castle Oaks Drive that has a farm house, two industrial buildings, and a 23.5± acre tree farm that is fully irrigated. The water rights include substantial tributary, non-tributary, and not non-tributary rights. View Converse
In April of 1995, Sterling was appointed receiver in the action styled In Re: Indian Motorcycle Manufacturing, Inc. and Concerning United States of America, Civil Action No. 95-Z-777, United States District Court, District of Colorado. This receivership resolved forty years of litigation over the Indian motorcycle trademark, and as a result, Indian Motorcycles were manufactured in the United States for the first time in over forty-five years. At the time of Sterling’s appointment as receiver, many people believed the case was hopeless. The initial offer Sterling received for the receivership assets was $10,000. Ultimately, Sterling sold the assets for an estimated $120 million, of which $24 million was cash and the remainder was equity for the claimants in the Receivership Estate who wanted stock in Indian Motorcycle, dealerships for the claimants in the Receivership Estate who wanted Indian Motorcycle dealerships, and Indian Motorcycles for the claimants in the Receivership Estate who wanted Indian Motorcycles. Indian Motorcycle subsequently became financially distressed, but was purchased by Polaris and is now fully operational. The trademark work that Sterling performed as receiver survived throughout the more recent times of distress.
TOWN OF KIOWA WATER ACTIVITY ENTERPRISE
Institutional Bondholders under two Bond issues brought an action against the Town of Kiowa, Colorado Water Activity Enterprise in the action styled FirstBank Holding Company of Colorado and Alpine Bank v. Town of Kiowa, Colorado and Town of Kiowa, Colorado Water Activity Enterprise, District Court, Elbert County, Colorado, Civil Action No. 2012 CV 43. In this Receivership Action, the Elbert District Court appointed Sterling as receiver for the Water Enterprise because it was in default of its obligations under the two Bond issues. Sterling refinanced the debt with a low-interest loan from the United States Department of Agriculture, thereby bringing the debt service down by almost one half. The Bondholders received 100% of their principal and all but two months of interest. In addition, Sterling arranged for additional customers to buy bulk water from the Water Enterprise. The significance of this receivership is that the receiver successfully resolved the distress of a quasi-municipal entity. This enabled the entity to avoid a costly Chapter 9 and demonstrated that receiverships could work in the setting of a quasi-municipal entity. There are hundreds of municipal bond issues in default around the country, many of which would benefit greatly from the use of a receivership to resolve their distress.
COLORADO HUMANE SOCIETY (2008)
The Attorney General for the State of Colorado petitioned the Arapahoe District Court to appoint Sterling as custodian over Colorado Humane Society & S.P.C.A., Inc. in the action styled State of Colorado, ex rel. John W. Suthers, Attorney General v. Colorado Humane Society & S.P.C.A., Inc., Mary C. Warren, et al., Civil Action No. 2008 CV 2659, District Court for the County of Arapahoe, State of Colorado. This high-profile custodianship action was brought by the State of Colorado under the Colorado Consumer Fraud Act for misappropriation and charity fraud by the prior management of the Colorado Humane Society. At the specific request of the State of Colorado, Sterling was appointed custodian to enable Sterling to rehabilitate the company. The custodianship was converted to a receivership by the Court. Sterling sold the assets, including the name, to a subsidiary of the Denver Dumb Friends League and the acquiring company continues to perform its important service to the people of the State of Colorado to this day. Sterling’s actions as receiver saved the 100+ year old Colorado Humane Society and avoid an almost certain liquidation in the process.
BARKER TOP, INC. (2004 – 2006)
In 2004, Sterling was appointed receiver in the action styled Arthur S. Beir v. Barker Top, Inc., Civil Action No. 04-CV-0743, District Court for the City and County of Denver, State of Colorado. This action concerned the claim of a company to a patent for a unique folding convertible top for Jeeps. The threshold matter in the case concerned the ownership and custody of the patent. The Denver District Court found that a receiver was no longer necessary and terminated Sterling as receiver. The case was resolved and the plaintiff now owns the patent (the only asset of value in the case).
DIVERSIFIED PANEL SYSTEMS, INC. (2002 to 2007)
In 2002, Sterling was appointed receiver in the action styled In Re: The Receivership Estate of Diversified Panel Systems, Inc., District Court for the City and County of Denver, State of Colorado, Civil Action No. 02-CV-2079. Diversified Panel Systems, Inc. was, at the time of appointment, the proprietor of two patent applications for a unique curtain wall system used in class A building construction, and a manufacturer of those systems. Sterling completed the application process resulting in the issuance of patents. Sterling liquidated the manufacturing operations and conducted a successful judicial sale of the patents, which continue in use today.
EAGLE LANDING (2001 – 2004)
Sterling was appointed receiver in the action styled In Re: The Receivership Estate of Eagle Landing Development Group, LLC., Civil Action No. 01-CV-05, District Court, Montrose County, Colorado. Eagle Landing was a residential, commercial, and golf course development in Montrose, Colorado. An irreconcilable dispute had erupted among the partners and the company was unable to operate, thereby leading to a default in the development loan. In conjunction with the secured lender, Sterling conducted a receiver’s judicial sale of the real estate assets and sold the property to the lender, which, in turn, sold the property to a buyer located by Sterling and financed by the lender. The Eagle Landing receivership was terminated in early 2005 after paying all creditors in full.