Bankruptcy Court Orders Foreclosure Sale For Biota

Posted in Foreclosed Properties, Foreclosure Auction, Foreclosure Homes, Foreclosure Listings, August 10th, 2007 |

BIOTA a water bottling company based in Telluride has been ordered to proceed with foreclosure sale as per orders of USA Bankruptcy Court. An attempt to delay it has met with failure.

As per releases of the aforesaid Court in Colorado district, BIOTA (Blame it On the Altitude) owes more than 100 creditors the total amount of $10.5 million. It largest creditor is United Parcel Service’s lending depart UPS Capital Business Credit.

BIOTA is disputing its claims of $7.5 million. BIOTA says that it will first go through the foreclosure and then stake counter claims against UPS by asking of $10 million as damages for unethical lending, says Jeffrey Hart the attorney of BIOTA based in Plymouth, Michigan. Hart opines that things are just warming up for the big battle ahead.

UPS Capital was not available for comments regarding the imminent war drums except for a vague statement that BIOTA’s attitude was most unfortunate.

A part of the disputed $7.5 million is about a loan of the Department of Agriculture, USA, which UPS Capital was responsible for collecting. Unfortunately BIOTA failed to repay. These loans are federally guaranteed. It is the taxpayer who is the actual lender. It went into default two years ago. But since then all avenues have been probed without any favourable result.

BIOTA came into name and fame using biodegradable bottles. They have now negotiated with a group willing to buy its assets and save it from the debt trap. The group will either buy during the foreclosure sale or at a later date during the redemption period of 75 days. Hart was unwilling to disclose the name of the investors or say how many there are in the group. BIOTA owner David Zutler could not be contacted while another company executive refused to comment on what Hart had said.

Things have been rather down for BIOTA for quite some time. Last year their financial troubles became worse when independent laboratory tests detected mould, bacteria and e-coli traces in the plant’s water. Luckily the findings had been timely discovered and none made its way to the unwary consumers. But for BIOTA it spelt doom. The plant had to be shut down last year in September. It limped back to operations in December. However legal action by UPS Capital had initiated legal proceedings against BIOTA much earlier in May last year.

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