RainbowVision Santa Fe, a housing development on the city's southeast side known as "the community of living diversity," on Thursday voluntarily filed for Chapter 11 bankruptcy.

Court documents show that RainbowVision has estimated assets of no more than $50,000 and liabilities as high as $50 million. The same documents indicate the company has between 100 and 199 creditors.

The Chapter 11 bankruptcy filing allows the debtor to remain in charge of the business and in control of its operation. Debtors and creditors are allowed flexibility to work together.

The largest creditor is Los Alamos National Bank, which claims $21.5 million dollars from RainbowVision. The second-largest creditor is the Santa Fe County Treasurer, which is owed back taxes in the amount of more than $265,000.

Los Alamos National Bank could not be reached for comment.

"The purpose of this filing is to provide an orderly framework that will enable RainbowVision to continue business operations and serve our members in good standing with continued services as we restructure," said a news release from Jane Steinberg, RainbowVision's marketing manager.

Reached by telephone, Steinberg said, "Everything we have to say is in the release."

The news release also said that bankruptcy filing "has been utilized by many U.S. companies to provide a protected framework during the reorganization period."

Furthermore, "in our case, it (bankruptcy filing) has become necessary because of the nonpayment of contractually required fees by some RainbowVision Independent condo owners," the statement said.

RainbowVision was also forced to sue, "because of the manner in which certain matters have been addressed in a recent arbitration ruling that requires this protected framework while clarification and modification of these matters is sought."

Joy Silver, president and CEO of RainbowVision Properties, said in the statement, "We are confident that this step will enable our community to move forward to better achieve its goals together."

RainbowVision, which opened in 2006, provides condominium ownership and rentals, assisted living and guest suites.

Contact Bob Quick at 986-3011 or bobquick@sfnewmexican.com.



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