Case:12-24882-ABC Doc#:543 Filed:10/22/12

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IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF COLORADO In re: CORDILLERA GOLF CLUB, LLC dba THE CLUB AT CORDILLERA Debtor. ) ) ) ) ) ) Case No. 12-24882 ABC Chapter 11

______________________________________________________________________________ THE CORDILLERA METROPOLITAN DISTRICT'S LIMITED OBJECTION AND RESERVATION OF RIGHTS WITH RESPECT TO JOINT MOTION OF THE DEBTOR AND OFFICIAL COMMITTEE OF UNSECURED CREDITORS FOR ORDER: (A) AUTHORIZING AND SCHEDULING THE SALE OF SUBSTANTIALLY ALL OPERATING ASSETS OF THE ESTATE, FREE AND CLEAR OF ALL LIENS, CLAIMS, AND ENCUMBRANCES, (B) APPROVING PROCEDURES FOR THE SUBMISSION OF QUALIFYING BIDS AND CONDUCTING THE SALE, AND (C) APPROVING THE FORM AND MANNER OF NOTICE PURSUANT TO FEDERAL RULE OF BANKRUPTCY PROCEDURE 2002 ______________________________________________________________________________ In support of its Limited Objection, the Cordillera Metropolitan District (the "District") states: 1. On October 5, 2012, the Debtor and the Official Committee of Unsecured

Creditors filed the Joint Motion of the Debtor and Official Committee of Unsecured Creditors for Order: (A) Authorizing and Scheduling the Sale of Substantially All Operating Assets of the Estate, Free and Clear of All Liens, Claims, and Encumbrances, (B) Approving Procedures for the Submission of Qualifying Bids and Conducting the Sale, and (C) Approving the Form and Manner of Notice pursuant to Federal Rule of Bankruptcy Procedure 2002 (Docket No. 521) (the "Motion"). 2. On October 19, 2012, the Debtor filed the Notice of Filing the Asset Purchase

Agreement Regarding the Joint Motion of the Debtor and Official Committee of Unsecured

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Creditors for Order: (A) Authorizing and Scheduling the Sale of Substantially All Operating Assets of the Estate, Free and Clear of All Liens, Claims, and Encumbrances, (B) Approving Procedures for the Submission of Qualifying Bids and Conducting the Sale, and (C) Approving the Form and Manner of Notice Pursuant to Federal Rule of Bankruptcy Procedure 2002 (Docket No. 539) (the "Proposed APA"). 3. The Cordillera Metropolitan District files this Limited Objection and Reservation

of Rights to the Motion and the Proposed APA to the extent the Proposed APA is not consistent with the Term Sheet previously agreed to by the parties. More specifically, the CMD objects to the Proposed APA to the extent it purports to require the Debtor to transfer the assets free and clear of all claims and liens, without providing an exception for real property and business personal property taxes. See, e.g., Proposed APA, 2.1. 4. In pertinent part, the Term Sheet provides: The Debtor and the Committee shall also jointly prepare and file with the Bankruptcy Court, after consultation with the Parties about the form thereof, a motion seeking approval of the sale of all the Debtor's operating assets, pursuant to this Term Sheet, free and clear of all Liens (other than liens which arise from unpaid real property taxes and/or all business personal property taxes), claims, encumbrances and interests (including without limitation free and clear of all claims, interests or rights which may arise out of Membership Documents) pursuant to sections 363(b) and (f) of the Bankruptcy Code . . . . (emphasis added). 5. CMD requests that all references in the Proposed APA to a sale free and clear

include expressly an exception for the following: Statutory liens arising in favor of taxing authorities to secure the payment of real and business personal property taxes.

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WHEREFORE, the Cordillera Metropolitan District respectfully requests that the proposed Asset Purchase Agreement be modified to be consistent with the Term Sheet, and such additional relief as may be appropriate. Dated this 22nd day of October, 2012. Respectfully submitted, SHERMAN & HOWARD L.L.C.

/s/ Peter A. Cal Peter A. Cal, Esq. 633 17th Street, Suite 3000 Denver, CO 80202 Phone: 303-297-2900 Fax: 303-298-0940 E-Mail: pcal@shermanhoward.com ATTORNEYS FOR CORDILLERA PROPERTY OWNERS ASSOCIATION, INC. AND CORDILLERA METROPOLITAN DISTRICT

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CERTIFICATE OF MAILING I hereby certify that on this 22nd day of October, 2012, a true and correct copy of the foregoing CORDILLERA METROPOLITAN DISTRICT'S LIMITED OBJECTION AND RESERVATION OF RIGHTS WITH RESPECT TO JOINT MOTION OF THE DEBTOR AND OFFICIAL COMMITTEE OF UNSECURED CREDITORS FOR ORDER: (A) AUTHORIZING AND SCHEDULING THE SALE OF SUBSTANTIALLY ALL OPERATING ASSETS OF THE ESTATE, FREE AND CLEAR OF ALL LIENS, CLAIMS, AND ENCUMBRANCES, (B) APPROVING PROCEDURES FOR THE SUBMISSION OF QUALIFYING BIDS AND CONDUCTING THE SALE, AND (C) APPROVING THE FORM AND MANNER OF NOTICE PURSUANT TO FEDERAL RULE OF BANKRUPTCY PROCEDURE 2002 was deposited in the United States mail, postage prepaid, addressed to the following: Paul Moss, Esq. Office of U.S. Trustee 999 18th Street, Ste. 1551 Denver, CO 80202 Arthur J. Abramowitz, Esq. Cozen O'Connor, PC Liberty View, Suite 300 457 Haddonfield Road Cherry Hill, NJ 08002 Joseph M. Barry, Esq. Donald J. Bowman, Esq. Travis G. Buchanan, Esq. Young Conaway Stargatt & Taylor LLP 1000 North King Street Wilmington, DE 19801 Brad W. Breslau, Esq. Cozen O'Connor, PC 707 17th Street, Suite 3100 Denver, CO 80202 Mikel Bistrow, Esq. Kathryn M.S. Catherwood, Esq. Christopher Celentino, Esq. Foley Lardner LLP 402 W. Broadway, Suite 2100 San Diego, CA 92101 4 Carl A. Eklund, Esq. Ballard Spahr, LLP 1225 17th Street, Suite 2300 Denver, CO 80202 James J. Holman, Esq. Duane Morris LLP 30 South 17th Street Philadelphia, PA 19103 Ericka F. Johnson, Esq. Matthew P. Ward, Esq. Womble Carlyle Sandridge & Rice, LLP 222 Delaware Avenue, Suite 1501 Wilmington, DE 19801 Kristi A. Katsma, Esq. Dickinson Wright PLLC 500 Woodward Avenue, Suite 4000 Detroit, MI 48226 Benjamin W. Keenan, Esq. William P. Bowden, Esq. Ricardo Palacio, Esq. Ashby & Geddes, P.A. 500 Delaware Avenue P.O. Box 1150 Wilmington DE 19899

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Garry R. Appel, Esq. Shaun A. Christensen, Esq. Appel & Lucas, P.C. 1660 17th Street, Suite 200 Denver, CO 80202 Tobey M. Daluz, Esq. Joshua E. Zugerman, Esq. Ballard Spahr LLP 919 N. Market Street, 11th Floor Wilmington, DE 19801 Vincent J. Marriott, III, Esq. Sara Schindler-Williams, Esq. Ballard Spahr, LLP 1735 Market Street, 51st Floor Philadelphia, PA 19103 Melissa Maxman, Esq. Cozen O'Connor, PC 1627 I Street, NW, Suite 1100 Washington, DC 20006 Mark Minuti, Esq. Saul Ewing LLP 222 Delaware Ave., Suite 1200 Wilmington, DE 19899 Erika L. Morabito, Esq. Brittany J. Nelson, Esq. Foley Lardner LLP 3000 K Street, N.W., Suite 600 Washington, DC 20007 Russell L. Munsch, Esq. Zachery Z. Annable, Esq. Joseph J. Wielebinski, Esq. Munsch Hardt Kopf & Harr, P.C. 3800 Lincoln Plaza, 500 N. Akard Street Dallas, TX 75201-6659

Michael S. Kogan, Esq. Kogan Law Firm, APC 1901 Avenue of the Stars, Suite 1050 Los Angeles, CA 90067 David L. Lenyo, Esq. Garfield & Hecht, P.C. 601 E. Hyman Ave. Aspen, CO 81611 Harlan W. Robins, Esq. Dickinson Wright PLLC 15 N. 4th Street Columbus, OH 43215 Harvey Sender, Esq. David V. Wadsworth, Esq. Sender & Wasserman, P.C. 1660 Lincoln St., Suite 2200 Denver, CO 80264 Zachary I. Shapiro, Esq. Richards, Layton & Finger, P.A. One Rodney Square 920 N. King Street Wilmington, DE 19801 Darnien Tancredi, Esq. Cozen O'Connor, PC 1201 N. Market Street, Suite 1400 Wilmington, DE 19801 Ann Marie Uetz, Esq. Foley & Lardner LLP One Detroit Center 500 Woodward Avenue, Suite 2700 Detroit, MI 48226-3489 Gregory W. Werkheiser, Esq. Morris, Nichols, Arsht & Tunnell LLP 1201 N. Market St., 18th Floor P.O. Box 1347 Wilmington, DE 19899-1347 5

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Jay H. Ong, Esq. Munsch Hardt Kopf & Harr, P.C. 600 Congress Ave., Suite 2900 Austin, TX 78701-3057 Jon T. Pearson, Esq. Ballard Spahr 100 North City Parkway, Suite 1750 Las Vegas, NV 89106-4617 Richard W. Riley, Esq. Duane Morris LLP 222 Delaware Avenue, Suite 1600 Wilmington, DE 19801-1659 Tamara Hoffbuhr Seelman, Esq. Megan M. Adeyemo, Esq. Gordon & Rees LLP 555 Seventeenth Street, Suite 3400 Denver, CO 80202 John F. Young, Esq. James T. Markus, Esq. Markus Williams Young & Zimmermann 1700 Lincoln St., Suite 4000 Denver, CO 80203 Evan Stone Jeffrey Rush, M.D. Pacific Medical Buildings 12348 High Bluff Drive, Suite 100 San Diego, CA 92130 Elizabeth Keenen, Esq. Keenen Law LLC 3773 Cherry Creek North Dr, Suite 575 Denver, CO 80209

Ronald Wick, Esq. Cozen O'Connor, PC 1627 I Street, NW, Suite 1100 Washington, DC 20006 Risa Lynn Wolf-Smith, Esq. Clarissa Raney, Esq. Holland & Hart LLP 555 17th St., Suite 3200 Denver, CO 80201

LITIGATION/3636172.1

/s/ Donna Baros Donna Baros