Creditors of the water-bottling plant that was hailed as Ouray’s manufacturing future when it opened just three years ago have filed notice that the plant will be put up for auction to recover $7.5 million in unpaid debt.
UPS Capital Business Credit filed a foreclosure notice on BIOTA Brands of America with the Ouray County clerk and followed that with a notice of demand for sale.
The plant had operated sporadically since last fall, when it became embroiled in a controversy over the purity of the water the plant receives from the city of Ouray’s source.
BIOTA had advertised the water as among the purest mountain spring water in the world, but testing done by independent laboratories for BIOTA turned up bacteria, including E. coli.
Tests done by state water technicians and an engineer hired by the city did not show contamination. But suggestions were made to do more testing and some annual cleanup at the spring boxes where the water is collected from an underground spring in the mountains above the town.
BIOTA president and chief executive David Zutler would not comment on the foreclosure. “We’re working on another strategy,” he said.
BIOTA also owes overdue property taxes and has three claims filed against the company by contractors who worked on the $15 million plant.
Staff writer Nancy Lofholm can be reached at 970-256-1957 or nlofholm@denverpost.com.
