Bankruptcy Judge Converts Gun Club Bankruptcy to Chapter 7, Business Closes Its Doors – BizWest

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LOVELAND — On February 1, a U.S. bankruptcy judge converted the Front Range Gun Club’s bankruptcy case from a Chapter 11 reorganization to a Chapter 7 liquidation, and as a result, the gun club was 697 N. Denver Ave., Suite 128 closed its doors. .

A notice on the company’s website said the business is “closed by court order.”

The Front Range Gun Club, which is a trade name of Gunsmoke LLC, and the owner of the property, Happy Beavers LLC, have been in the midst of bankruptcy since May 2020, when they received a foreclosure notice Y filed for Chapter 11 bankruptcy in July of that year.

Bankruptcy actually consists of two parts, one involving the real estate and the other involving the operating business, all involving the same creditors.

Each of the cases led to more than 300 filings in bankruptcy court, as well as an unrelated lawsuit in which the gun club filed a lawsuit against its former owners — Angry Beavers LLC, Edward J. Klen and Stephen J. Klen, also creditors in the bankruptcy — in September 2020. The lawsuit, still unsettled, alleged fraud, negligent representation, misrepresentation, nondisclosure or concealment, and other allegations against the former owners of the gun club when the new owners purchased the business and property.

Bankruptcy Judge Joseph G. Rosania Jr. wrote in his court order that the United States Trustee’s attorney, Alison Goldenberg, “commented that she had rarely seen a case accompanied by so much acrimony between the parties.”

Over the course of the bankruptcy process, numerous requests for extensions of deadlines were filed to allow negotiations between the parties or to allow debtors to file amended reorganization plans.

The judge recognized that “the members of the debtor [Richard Weingarten and Chee Wei Fong] admit that they no longer wish to operate the business…” He further stated, “the court has lost confidence in the debtor’s ability to reorganize”.

Since the Front Range Gun Club operating business was losing money, according to profit-and-loss disclosures, and creditor Great Western Bank noted that “there is no equity in the estate’s ownership beyond its secured claim,” the court of bankruptcy determined that moving to Chapter 7 would be in the best interest of the parties.

A meeting of creditors is scheduled for March 3.

A message left with gun club owner Weingarten seeking information about personal property members of the club have on the premises did not result in a returned call.

The cases in the United States Bankruptcy Court are In re: Gunsmoke LLC, case number 20-14962 and In re: Happy Beavers LLC, case number 20-14853.

LOVELAND — On February 1, a U.S. bankruptcy judge converted the Front Range Gun Club’s bankruptcy case from a Chapter 11 reorganization to a Chapter 7 liquidation, and as a result, the gun club was 697 N. Denver Ave., Suite 128 closed its doors. .

A notice on the company’s website said the business is “closed by court order.”

The Front Range Gun Club, which is a trade name of Gunsmoke LLC, and the owner of the property, Happy Beavers LLC, have been in the midst of bankruptcy since May 2020, when they received a foreclosure notice Y filed for Chapter 11 bankruptcy in July of that year.

Bankruptcy actually consists of two parts, one involving the real estate and the other involving the operating business, all involving the same creditors.

Each of the cases led to more than 300 filings in bankruptcy court, as well as an unrelated lawsuit in which the gun club filed a lawsuit against its former owners — Angry Beavers LLC, Edward J. Klen and Stephen J. Klen, also creditors in the bankruptcy — in September 2020. The lawsuit, still unsettled, alleged fraud, negligent representation, misrepresentation, nondisclosure or concealment, and other allegations against the former owners of the gun club when the new owners purchased the business and property.

Bankruptcy Judge Joseph G. Rosania Jr. wrote in his court order that the United States Trustee’s attorney, Alison Goldenberg, “commented that she had rarely seen a case accompanied by such acrimony between…

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