Mondorivoli, the real estate holding company of Durango restaurateur Jean-Pierre Bleger, has filed for bankruptcy in U.S. Bankruptcy Court seeking reorganization under Chapter 11.
Kenneth Buechler, attorney for Mondorivoli, said the bankruptcy will not affect the operation of Bleger’s restaurant, Jean-Pierre Bakery, Café and Wine Bar.
Mondorivoli is also seeking financing to pay off all its loans and creditors and consolidate debt with a new creditor, and if the new financing can be obtained, the bankruptcy petition would be dismissed, Buechler said.
Another possibility, Buechler said, is refinancing the debt with creditors at lower interest rates.
The bankruptcy petition was filed July 18 to stop foreclosures or collection actions while new financing was sought, Buechler said.
Bleger declined to comment for this story, directing questions to his attorney.
A meeting with creditors will likely be held within the next 30 days, but a meeting has not yet been set, Buechler said.
The case has been assigned to Judge Joseph Rosania of the U.S. Bankruptcy Court District of Colorado in Denver.
Five properties, four in Durango and a strip mall in Pagosa Springs, are involved in the Chapter 11 filing.
The properties involved in Durango include the building where the restaurant is located at 601 Main Ave. Other properties in Durango held by Mondorivoli are at 600 Main Ave., 873 E. Third St. and 225 East Eighth Ave.
The property in Pagosa Springs is a strip mall at 510 San Juan St.
The largest creditor listed, Four Corners Community Bank, holds the $5.3 million mortgage on the 600 and 601 Main Ave. properties.
The second-largest creditor, Basin Property, holds the $1.85 million mortgage on the property at 225 East Eighth Ave. and the strip mall in Pagosa Springs.
Fairview Capital holds the $800,000 mortgage for the property at 873 E. Third St.
The La Plata County treasurer is also owed $85,498 for property taxes.
Bleger has been plagued with financial woes for years. A previous real estate company, Winble Corp. of Colorado, filed for Chapter 11 bankruptcy in 2006.
The café and bakery at 601 Main Ave. was purchased for $1.63 million in 2003 and foreclosed in 2009.
Bleger established Mondorivoli in April 2010 as the firm handling his real estate ventures.