Yellowstone Club Founder Ordered to Pay $41 Million
SAM Magazine--December 6, 2012--A federal bankruptcy judge passed down a ruling finding Yellowstone Club, Mont., founder Tim Blixseth responsible for the financial collapse of the private club and ski area. According to the Bozeman Daily Chronicle, the judge said that "in a pattern of self-dealing," Blixseth used the Club for his own gain, siphoning off hundreds of millions of dollars and ordered him to repay $41 million.
That sum would repay most of Yellowstone's creditors, but not the largest—Credit Suisse. Here the judge stated, "Blixseth and Credit Suisse have done a lot of finger pointing in this case, but in the end their conduct prompted the bankruptcy." Credit Suisse loaned The Yellowstone Club approximately $375 million.
The Yellowstone Club first ran into trouble in 2008 when it filed for bankruptcy. Some of the lenders were repaid (about $80 million) when the Club sold to CrossHarbor Capital Partners last year.