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County attorney: Ironwood bankruptcy proceedings pause Montezuma County enforcement; liens remain
Summary
Montezuma County’s attorney reported the county is waiting on a bankruptcy court decision in the Ironwood case, leaving county enforcement actions on hold while multiple lienholders’ claims are sorted.
Montezuma County’s attorney told commissioners on July 29 that the county is on hold in enforcement and property‑related actions tied to the Ironwood matter while bankruptcy proceedings continue.
County Attorney Tarnowski said the U.S. trustee had filed a motion contesting the debtor’s ability to proceed in bankruptcy, and court action on that motion is pending. As a result, the county cannot take further enforcement steps until the bankruptcy court’s decision clarifies the status of the debtor’s claim and the relative positions of lienholders.
Tarnowski said Montezuma County holds significant liens on the Ironwood property but is not the only lienholder, and the competing claims must be sorted through the bankruptcy process before the county can move forward.
“The county’s got pretty significant liens on the property, but we’re not the only lien holders,” Tarnowski said during the meeting. “We’re kind of on hold in our case until that’s sorted out.”
The county attorney provided this update during his department report; no formal action or new direction was requested or taken by the board during the meeting. Commissioners did not give further instruction beyond noting they would await the bankruptcy court’s outcome and the county attorney’s next update.
The county’s position and next steps will depend on the bankruptcy court’s rulings and any ensuing schedules for creditor claims or asset disposition.
