New West News Brief

Yellowstone Club on Brink of Bankruptcy, Edra Blixseth Says

By Lucia Stewart, 4-08-08

The divorce of millionaires Edra and Tim Blixseth has turned nasty, as they find themselves in a court-disputed power struggle over the operations of the Yellowstone Club, reports Scott McMillion of the Bozeman Daily Chronicle.

Edra claims that the Yellowstone Club is on the brink of bankruptcy due to overdue court settlements and drained assets for Tim’s Yellowstone Club World venture, McMillion reported from the Virgina City courtroom. She asks to be reinstated as the chief operating officer and have her estranged husband banned from the offices. Tim claims this is a legal move to circumvent the court process in California.

“There is no competent evidence that Blixseth has raised or can raise sufficient cash to solve the crisis and stabilize the club without effecting ‘firesale’ lot sales. He has also lost the confidence of the club’s creditors and employees,” as reported from Edra’s court papers.

Vice president of the club’s real estate development, Bob Sumpter, confirmed in court that several of last year’s $95 million worth of real estate sales, and $30 million in sales this year, were sold to other companies related to Tim Blixseth, reports McMillion.

Click here for the full detailed story.

Update: The Chronicle reported after the continued hearing, Judge Loren Tucker stayed all motions from the 12 lawyers until a deposition is received from the Yellowstone Club’s loan holder, Credit Suisse. Tim Blixseth will remain in his position overseeing the club at this time. It was also reported that Boston financier Sam Byrne backed out of purchasing the club due to the overdue settlement to Greg LeMond and other minor shareholders, and the bad publicity that followed.

[End of article]

Comment By Dewey, 4-08-08

Since I am nowhere near a relevant Courthouse in Montana , it's difficult to inquire about the status of Blixseth's plans for his exclusive " Monster Lake" development planned for 8 miles south of Cody WY which was announced well over a year ago. It would've been a sagebrush and sandstone ridge version of the Yellowstone Club, an exclusive gated community of McMansions surrounding an existing enhanced freshwater lake that contained monster rainbow trout , hence the Monster Lake name. The ranch that Monster Lake was derived from was previously owned by the Mormon Church as part of its Deseret Ranches program, then was acquired by a Wall Street investor who dumped a bunch of money in cody and Powell, buying among other things the Old Trail Town frontier museum and one of the finer dude ranches up the South Fork of the Shoshone. Then that investor went into a dramatic bankruptcy and all that was liquidated. Tim Blixseth bought the Monster Lake property , but little has been heard since. I'm just wondering if the Monster Lake property shows up in any of the Yellowstone Club-Blixseth divorce papers. We in Cody WY would like some insight.

Comment By bear bait, 4-09-08

Even the spots on a grey haired leopard don't change. Hang on, it's going to be a bumpy ride. tee hee....you gets what you gets...Timmy is will slither out the other side, with the financial wreckage behind him....the first time it was shame on him. This time it is shame on you....

Comment By Jeff, 4-10-08

Stop reporting on this bullshit...who really gives a shit what Tim and Edra are up to. Is this a tabloid???

Comment By Dewey, 4-10-08

Jeff said:
" Stop reporting on this bullshit...who really gives a shit what Tim and Edra are up to. Is this a tabloid???"

Actually , Jeff, I believe this is what they call " Economic Development" in Montana these days, like that empty jail over in Hardin. Important stuff.

Comment By bear bait, 4-12-08

Timmy will cost the area millions before he flies off to new diggings. Private and public millions. So it is news. It is preparation for the future. It is why history should always be read. It prepares you for the future. Timmy has history. Some of it scary.

This article was printed from www.newwest.net at the following URL: http://www.newwest.net/city/article/edra_conveys_yellowstone_club_brink_of_bankrupt_demands_operations/C396/L396/