Warrant Issued for Arrest of Edra Blixseth
By Jonathan Weber, 2-19-09
Edra Blixseth at a court hearing last summer. Photo by Alexia Beckerling.
A federal judge in Colorado has issued a warrant for the arrest of Edra Blixseth, owner of the bankrupt Yellowstone Club, after she failed to appear for a court proceeding relating to her alleged default on a $13 million loan.
A warrant was issued last week for the arrest Edra Blixseth’s son, Matthew Crocker, in connection with the same loan. The loan, from a Colorado real estate finance company called Western Capital Partners, was for the Story Mill development project in Bozeman.
While the warrant for Matthew Crocker was limited to the state of Colorado, the jurisdiction of the so-called “bench warrant” for Edra Blixseth has not been determined, according to the minutes of the Colorado court hearing.
The hearing minutes also state that Blixseth’s attorney told Western Capital’s attorney that he “anticipated a bankruptcy filing by Ms. Blixseth.” Crocker filed for personal bankruptcy last week, but a search of court records has not revealed any such filing by Edra Blixseth.
Blixseth assumed ownership of the Yellowstone Club in August following her divorce settlement with Tim Blixseth. The club fell into bankruptcy in November, staggering under the weight of the resort real estate bust and $309 million worth of debt on a loan arranged by Credit Suisse. The proceeds of that loan went mostly to Tim and Edra Blixseth personally, and to the purchase of properties largely unrelated to the Yellowstone Club.
Edra Blixseth is subject of a growing pile of lawsuits, including one filed this week in Madison County, Montana relating to a Mexican real estate deal. She is also in default on a $35 million loan from CrossHarbor Capital Partners that’s secured against her Palm Springs estate. She also allegedly owes money to several other banks and individuals.
CrossHarbor is trying to buy the Yellowstone Club, which is operating under Chapter 11 bankruptcy protection. The bankruptcy judge this week rejected the proposed rules for an auction of the club, though an auction under revised rules remains likely. CrossHarbor has offered to buy the club for $100 million in cash and debt and invest an additional $75 million in the property. Tim Blixseth has said he intends to try and regain control of the club, and accuses CrossHarbor and Edra Blixseth of conspiring against him.
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Keep it wild.
Clearly there is a fraud going on with all these loans and it would be interesting to see the loan applications.
Western Capital should also ask where the money went as GO build never used all the money, clearly Edra used a significant amount funding her divorce which is illegal as the funds were for building Story Mills. Again, a loan is taken for a certain project and instead of it going to Story Mills it went to pay for Lawyers, Jet fuel and plane as well as Porcupine Creek running expenses. Ask Mathew her son where the money went! The money never went to what it was intended and violated the loan which was misuse of funds and this is FRAUD.
Can you let us know who is the legal counsel for the Members committee who is representing them in UTAH. I wish to know how we can reach them?
Thank you
The counsel in Utah is not representing the members. He represents the committee of unsecured creditors. Counsel for the ad hoc committee of Yellowstone Club members is Jonathan Alter (sp?) in Connecticut. John Grant of Helena is the committee's local counsel.
go to the the yellowstone committee website or the law firm website for the Utah firm Parsons Behle & Latimer.
A meeting was held last week by members to determine the possible outcome of what will happen to the club.
Thank you,
Mel
you're hired! When can you start?
I can start in a couple weeks.
Just trying to inject a little (darn little) humor.
In the current economy, even rich people are holding back. How many years is it going to have to be carried until it stops losing money? For any of you that have actually looked at the public financial statements filed with the court, you will notice that the YC lost $2.3 million dollars in January. Xmas, New Years, and MLK weekends are some of the biggest money weekends and they are still losing money. The place is a ghost town these days.
Do Discovery Land, and Cross Harbor really think that once the place emerges from bankruptcy, it is going to be wine and roses? Am I wrong to think that even if it does emerge from bankruptcy, it might end up in the exact same spot in a few years? Maybe they know something that I don't, but I just don't see a bunch of potential members lining up to join. Who is drinking the kool-aid here?
I am sure the club can be operated on the current member fees, as long there is a clean start (dept free) and its operated with in a framework that is affortable, hello.
Who is taking on the deptload ?????
how about the ones that created it in the first place.
I see great potential partner.
I agree with your seasoned and experienced view, these departments need to be offloaded so it can be department free and and the department load eased.
I think the 'affortable' (sic) framework can wait until the indians with their tomahawks start attacking.
Please excuse us if we take your solvency advice with a grain of salt, or several.
Do you mean 'debt free' and 'debt load' rather than dept free(sic) and deptload (sic sic sic)?
cheers.
The only way to make the club work is to sell out the membership. I my humble opinion, the only way to get the members under current economic conditions is to offer some "low price" membership options. Something more in the 1 million dollar range, not the 4 million dollar range.
1. Can anyone shed some light on the recent ruling stting that the terms of the auction are unfair? Will it still be sold through an auction format?
2.To all of you who are members of YC...can you tell us what has been discussed at your meetings & what you would like to see done with YC? Who do you all hope will be the new owner and what direction do you want to see it taken in?
1) Don't know
2) Wasn't at the meeting
What would I like to see done? I would like to see as many lots sold at a FAIR price as possible. I would like to see them sold to families that plan to build on those lots within 1-2 years. I would like those to be families that are passionate about skiing, in love with the Big Sky area, interested in being a part of the community, and enthusiastic about being active members of the club. I would like to see the club owned by someone who is interested in the values of the club and it's members and not just the VALUE of the club and it's real estate. I would like to see people come to Yellowstone and fall in love with the views and the members and the employees...not the amenities and the elitism and the trophy homes. I would like to see the whole thing sold out in a year and homes being built and people in the Big Sky area put to work. I would rather NOT see more home built on speculation, inflated real estate prices and homes with so much square footage that no one wants to eventually live there permanently.
In answer to question one: There will almost certainly be a revised proposal on the auction procedures that will attempt to address the objections of key parties, the judge specifically cited in his ruling the unsecured creditors and the B shareholders. One never knows, but I'd expect that some kind of auction procedure will be approved after some further wrangling.
Re question two, I'm not invited the member meetings, and of course different members have different opinions. But in general my sources indicate that most members are interested almost exclusively in the club being solvent, out of the press and out of the courts (probably in that order), and also very much want the trade creditors, employees and other locals to get paid. They are much less concerned with Credit Suisse and who makes or loses money in the larger deal.
As an editorial comment, I would also agree with the comments above that making the club a financial success isn't a no-brainer and there is risk involved for anyone who might buy it.
Why don't we start YC over again and make it commune?
We could all eat falafel, smoke hooch and listen to Jerry and the boys- maybe even ski some "commune powder"! Leave no turn unstoned!
Thank you, Jesus! If you are an actual member, finally one who doesn't have their head in the sand speculating about the 'deal' that will make it all work! If the revenue isn't there, the long-term future probably isn't there either. No, I don't have a clue about commercial finance, but as far as I know even the greatest of financial wizards can't make money appear from thin air. Looking at the conditions around the world and conditions around here that's exactly what would need to happen. But then again, maybe the dealmakers will prove me wrong. I'd welcome that, so the smaller creditors would get paid.
Neglecting the debt, which I attribute more to the Blixseth largesse, the question is whether current members are prepared to pay 3 to 4 times current annual dues to keep the club elite and 'private', or for them to make their private powder less private, or even....public! Oh the indignity of it all.
Ivory towers don't finance themselves. Enjoy the relaxation.
It is nice to hear that they are less concerned with CS and more concerned about the vendors an employees!
YC and its collapse has had a large impact on the Gallatin Valley. Obviously, we have all heard the horror stories of employees and vendors going unpaid as well as all of the contractors being left with no work. What is not being said aloud is the trickle down effect this is having on the entire Valley.
With everything that has happened, the Valley is in ruins. Local businesses are closing, laying off employees and cutting benefits! It has left it's mark on hardware stores, grocery stores, insurance companies, doctors offices, etc...
YC was not only prestigious to its members, but to the rest of the valley as well. It served as ab eacon of hope. It kept our community thriving, even going into this recession. We stood out.
Judge Kirscher need to let something happen to turn the club around and FAST! Isn't he a member of this Montana community? shouldn't he be more concerned with getting out local economy back together than with getting CS the highest price possible?
I am not saying that it should be sold at an unreasonably low price, but I think that a fair price with a turn around plan is in our best interest!
It is not too late to save our community and even turn it around, but it must be done quickly!
Please, Judge Kirscher, think of what is best for YC...its members and its supporting community! We beg you to act quickly!
Are you so insensitive to others? Listen, CS is an administrator or hundreds of bond holders who in turn took savings from hard working individuals or funds who took savings from pension funds to make that loan possible. THIS IS NOT CS MONEY! How would you feel if you put 100,000 into HR Block and then HR Block bought some YC bonds? Your kids education fund is no more, your savings just lost 100,000. Are you getting the picture yet? There is a sense of responsibility lacking in yor statment. Its ok to take loans and not pay them back. What are we teaching our future generation? Listen, banking 101, borrow money - pay it back. By screwing CS you are onlyy screwing the system which is you as a tax payer. Wake up. We are all in ths shit together.
Now, a fair price and insuring the maximum are paid off is fair. Tim Blixseth Plan will be the best. THe judge made a fair ruling as the deal put forward was telling the public its ok to borrow 375m and only pay back the back 30m. Put yourself in the shoes of all persons. Your comment is selfish and will only bring more problems. Tim blixseth aregued the deal was not fair as he knows his responsibilities when he took the loan and he is seeing others try and take the club cheap. CH is not the bad person either, merely misread the market. They too have a good plan and they too know they will have to bid around 200 to 250m for this club.
2. This is the way of TB: borrow $$, not pay it back, not pay those he owes, declare bankruptcy, start all over agin. CS should have known better and the bond holders should have been paying attention. He is questionable in character! He is only out for himself and his wallet! After reading everything, it is clear that this was his intention from the beginning. He drove YC into the groud (as evidenced by all of the $$ he stole & never repayed), he rescinded on a deal to sell YC and now, out of nowhere, he comes on on his white horse ofering to repurchase???? This is not showing he knows his RESPONSIBILITY, as you claim. Seems to all of us that this has been staged so that he could re-own YC at a fraction of what he owes. The only way he should regain control is by repaying his ENTIRE debt on it.
3. How does TB plan on purchasing YC? Has he found a new group of people to steal from? Have they not learned that history repeats itself & that people DO NOT change??
4. My comment is not selfish. Quite the contrary, I am asking on behalf of all of those around the Valley who are suffering as a result of this. I don't know where you live or where you are from, but here in Montana (native Montanans, this is) we care about one another. We care about eachother as friends & family. We look out for one another.
5. I am in the shoes of all of the people. My shoes have holes in them, but at least they were bought with an honest earned dollar.
I'm aware that that amount is not really significant in the big spectrum of things, but it's a very significant percentage of my annual income, it's enough that it effects at least 5 other local businesses, will wipe out my retirement plan in the attempt to repay incurred debt, puts me in a poor light with my vendors as a deadbeat, and may very well be the end of a business I've spent 4 years building. In spite of hard work, expanding my business perview, and creative marketing I've been unable to pull out of the hole thats been created by this default. I'm sure I'm not the only small business being destroyed by this either.
As a former employee of the YC I was always treated fairly and liked Tim and Edra, and am proud to have been a part of the development I support thier vision even tho there were some obvious wasteful practices and poor management descisions. Every wasteful expense was justified by luring new members, and to that end no expense was too great, even tho more sensible alternatives were available.
There is no room for anyone to gloat here. More people than the Blixeths are being harmed and the effects will continue until the creditors can be paid.
In the meantime, if anyone need a remodel or some home and building repairs or regular maintenance, I'm a professional and quality oriented contractor/repairman who will be happy to help you out, and in the process work my way out of this debt left in the yellowstone club/gobuild wake.
I'm in the phonebook yellowpages under handyman services.
Among those was the following comment directed to GC...I don't know who it was by: "By the way, do you own a home on the hill? You do realize if this entire club is sold for 100m, not only does CS bond holders get screwed so do all the home values on the Hill. Is this fair? Why attack TB when he is merely trying to do the right thing? This economy sucks. TB can walk away but at least he has the balls to comme back and help. That takes a lot of courage given the attacks against him. This is why I wish to stop attacking TB and
see what he is all about. TB is horrible attacked and maybe he deserves some but he could walk away and it will take years for CS bond holders to unravel the promissory notes and assets, TB merely says' HERE I AM lets do a better deal for the benefit of those i brough into this mess. WHY is that a wrong thing. Now if this is all a lie on TB's part then you have every right to make your comments but TB is taking this very seriously so give the man a break." As someone with a "home on the hill"....I can genuinely say I am far more concerned about the impact of this debacle on the Big Sky community, the morale of the members and employees of the club, and the bad press Tim has created than I am with the property value of that home. It is hard for me to imagine that Tim coming back into the picture would be perceived by anyone as a good thing.
PiginaParka, how much the 1st liens get paid doesn't really impact the value of the homes. The risk with having the 1st liens (remember, its not just CS; it's all the hedge funds, insurance cos., etc. that bought this paper from CS) take over YC is that your new owner will be a wounded animal, and they aren't going to have much pity on the homeowners or locals (yes, they will try to maintain good relationships, but they aren't going to bend over backwards - after all, they just lost a couple of hundred millions). CS will more or less do what that group dictates - after all, they already lost these valued clients a bunch of money, so they're going to bend over backwards to please them - and that group is emotionally and geographically remote from YC. I'll bet that the CS group raises your dues pretty quickly to reduce their cashflow drain, for example. On the other hand, if your previous owner steps in, the YC owners may have a bit more leverage with him - after all, and he's the one who made the hundreds of millions that the CS group lost! It will be a little tougher for him to raise dues, etc. if he has to show his face around YC; it's one of those "The devil you know......" situations. In the case of Promontory, it will be interesting to see how the members react to running into the previous developer (our version of TB) around the Club this summer, since he has a home @ P.
For you locals that are owed money by YC, the Promontory deal with the bankruptcy court is that you all get $1,000, regardless of how much you were owed (see Jon's Promontory article). Again, for the aggrieved, I think you have a better chance of getting a little love and extra business (if you still want it) if TB controls YC than if the CS group.
Good luck!
Beentheredonethat - Very well said.
YC--totally ridiculous. Blixseth has been a con artist for years,
ever since he started in the lumber business in Oregon. History
repeats itself and Blixseth is, who he is--an opportunist. This
man is no hero and neither is his former wife. They are greedy,
self-serving people and will continue to harm others if given the
chance. CS also got greedy and in turn paid a big price for doing "business with the devil." I suspect that it's not just about the
money with CS. After all over 200 million dollars of YC loan money ended up in Blixseth's personal bank account and has
"vanished." Who can forget or forgive this? Perhaps another fool?
Her beau,actor Jack Scalia should just leave her and find himself a better woman.He does not need this aggravation in his life.He's a great looking man for his age and he should find a woman worthy of him.