Is trouble in paradise really over?
Report: Edra Blixseth to Take Control of Yellowstone Club
By Lucia Stewart, 7-06-08
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| Caption: photo courtesy of Yellowstone Club | |
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The battle over control of the exclusive Yellowstone Club may be coming to an end, reports the Wall Street Journal, with Edra Blixseth taking over her estranged husband Tim’s 50% stake and becoming the sole owner of the club.
The deal came as part of the couple’s divorce settlement, the Journal reported (though the Journal last year ran a story characterizing the divorce as a model of amicability, and that turned out to be far from the case). The story of the club’s woes has turned into a veritable courtroom soap opera, echoing with phrases such as “liquidity crisis,” “breach of fiduciary duty” and “hopelessly conflicted.”
The Journal says Edra will bring in Discovery Land Co. to manage the club, which is struggling with a heavy debt load and a cratering real estate market. At least some club members, who are horrified by the negative publicity, have told New West they favor professional management.
History suggests this is not the end of the story, so stay tuned.
[End of article]WOW!!! What a turn of events. One must ask the question, why did Tim Blixseth given in after fighting so hard to keep the club? Here are a few simply questions which need to be answered or investigated:
1. Did Tim give up the fight as he realized that keeping the club during these difficult times is impossible to pay the Greg Lemond 21m, Crossharbor Capital 12m, the trade creditors 10m and of course the Credit Suisse loan payments?
2. Did Tim Blixseth give up the fight because he now does not have to deal with any of the tax issues as the article states Edra Blixseth takes over his 50% ownership which means the remaining 50% of the tax problems? Great move for one of the parties not to have to deal with this issue?
3. Did Tim wind up debt free on the assets he purchased with the Credit Suisse Loan being Tamarindo, Farcheville, St. Andrews, the Yachts, the planes, etc?
4. If as the article states, Edra assumes all of Tim’s shares and Tim gets his assets free and clear of debt, how does this impact the loan with Credit Suisse?
5. The article mentions 30 members waiting to join, at 300K per member this represents 9m, and 2m per land, this is 60m in gross sales or 30m net after expenses, commissions and debt payback to Credit Suisse.
6. Crossharbor is owed 12m against the deposit given at the time of doing a deal, do they get their money back or does Crossharbor buy the family compound Tim Blixseth stated for 55m with memberships attached? The Robert Frank article mentions that Edra Blixseth values Crossharbor being a major investor?
7. Discovery Properties is mentioned as a possible management company who is one of the most successful mid-market developers in the USA (750K to 2m). The website mentions numerous developments. How is the group doing today given the current housing collapse? The article mentions that Discovery is willing to purchase equity into the club which we assume is to take over the management and selling of the real estate? This appears to be a pay and play concept but it only makes sense if in fact the debts can be paid and promises made to finish the club are maintained.
8. Why, Why, Why did Tim Blixseth concede the club? This makes no sense unless the new it’s impossible financially to keep this club out of debt. Will Greg and party be paid as soon as possible? What about all the other creditors, lenders and small people?
9. Professional management is great but if each member is only paying between 18K and 25K per year in annual dues, how does this cover the interest payments of the club? 285 members but 25 do not have to pay fees, thus 250 members x 20K is $ 5,000,000 which does not even cover the interest rates on 300m @ 7% per year does it? What about the running costs of the club of 10m to 15m per year? How professional can you be when the running costs all rely on selling land in one of the most difficult times in the housing market? NY Times just ran an article on falling prices in NY? How is the club immune to all of this? Did Tim make the right decision to turn over all the problems and run with free and clear assets? Time will tell we assume?
10. Finally, no matter what the private settlement is, the question remains, where is all the cash coming from to keep the club afloat? Selling Land? Not in this market. Is the plan to bring in other investors and for Edra to sell shares as she mentions in the WSJ article? Discovery buys how many shares and at what price? Any other investors?
11. Major Question: Is Discovery selling plots of land at its other resorts and membership fees? Can Discovery sell at a minimum 25 memberships a year and 25 plots of land at the club? I believe this article needs to have some more questions asked and answered. Who is the winner? If the club makes it out of the crisis, then Edra, if not Tim has made the best deal of his lifetime walking away with cash and debt free assets with no tax problems.
More questions:
Crossharbor was buying at 450m at the end of the day. Loan is at 300m, Greg at 20m, vendors at 10m, Crossharbor at 12m, July CS payment of 4m. Edra keeps the club and pays all the problems but does Tim blixseth get cash in the deal or dd he leave Edra wit paying everything and walk? 342m debt with 42m needing to be paid quickly? Did Tim ge a check for 100m?, 50m? or 0m
Tax problem in the company who took the loan, which was Blixseth Group, did Edra get Blixseth Group and he enormous tax problem? Lets remember that the tax problem relates to the money Tim took into Blixseth Group of 209m to bu his World Club assets as well as cash he pulled out. Dividend or loan? Blixseth Group owes taxes does it not? Who pays? Remember, this club is about selling real estate, nothng else.
Great questions but no answers.
Discovery Land Co is backed by Westbrook Partners LLC, a major property investors with offices globally. Assuming Discovery is given the 'Professional Management' this looks to be a wining combination. Discovery Land Company has no Real Estate problems being reported at any of his resorts, in fact just the opposite, Discovery is still selling land and building houses. Given this success, seems like Yellowstone Club is saved and Edra Blixseth winds up with a club with a value of 1.3 Billion in locked away value. Forbes here you come Edra and not to mention you have the two family jewels, the club and the golf estate
Comment By Blind Luck, 7-07-08Way to go Edra Blixseth. We all knew you could hold out in the fight of the century. Even the press was against you but look at you now! I was re-reading the article before this where the judge, press and even some members said you had no chance of winning. I think it goes to show you that the little people sometimes manage to get to the top with hard work and determination. I would imagine this is going to effect many relationships involving the club. Are you going to keep your good friends who gave evidence against you such as Robert (defacto COO as the Judge called him)? What about the present CEO? All of us are cheering for you and look forward to the day you return to the mountain. I am surprised that the writer from the Cronicle is not writing, he was a big fan of Tim, yet we notice the staff writers merely put a blip on their website. Goes to show you how some writers and press were not for you winning this beautiful club. Edra, from everyone in Montana and those who love this club, WELL DONE
Comment By Future Investor, 7-07-08Discovery Properties is the best news the club has had in a long time and one of the best decissions taken by one of the owners to bring professionalism into the organization. Great company, great leader and one of the best in the industry at real estate development. I can see why Discovery is investing into the club and assuming the management. We are investors in 2 of his properties today and we are very happy. Look forward to being apart of Private Powder.
Comment By Brian, 7-07-08Edra
The employees, well at least the ones on the ground doing all the work are so excited to learn of this news. We stand with you and hope you come up to the club soon and remove the bad blood running this club today. The sun is shinning and its time to make changes starting at the top. We have put up with these egos until you took over. Thanks for fighting to keep this club. We will not let you down and stand behind you.
What an amazing story and at the same time concerned by the title of the article. NewWest seems to doubt that this deal will happen given the title ' Is trouble in paradise really over?' What is NewWest saying with such a title? I agree that WSJ has been 'Flip-Flopping' on stories but do you know something the readers do not? Are you speculating that a deal may not happen? Clearly WSJ had another exclusive from the sources that count.
When do we expect a follow up article from NewWest? Where is Sharkbait these days? He was always after Tim Blixseth, I guess we know he must be extremely happy these days. I wish only the best for the members and to say thank you to both Tim and Edra Blixseth for bringing this to an end.
Readers of this comment thread should be advised that all of the comments above appear to be from the same person, despite the different names. To Bigpee/ Blind Luck/ Tanya / who ever you are really, we ask that you stop deceiving people, you are obviously knowledgeable about the situation so honest insights and comments would be appreciated.
Comment By JGallen, 7-07-08Thanks Jonathan for your comments.
My question is why is there a thank-you going out to both Edra and Tim when they created this mess together? Please explain how Edra is the "little person"?
The only "little people" here are the members who had to deal with this mess, the employees and the creditors of Yellowstone.
BTW, we don't know what the divorce settlement is. No one gives away everything for nothing.
I too am very excited for I am a member there as well. I have an amazing view of a clearcut its simply astounding. I feel very fortunate to live here year around!! I have some locals help me get groceries and such from Bozeman.
I laugh at all you workers. You smell like marijuana with your red eyes, most of you are helpless without my help.
Toodles.
Joey
I jsut want to thank New West for posting the PDF transcipts of the April 7th hearing. On page 274-275, it was interesting to see how many Yellowstone members were part of the due diligence efforts -only 3 out of 400 members. No one was even sure if these three members owned property at Yellowstone. What was incredible is the reason these members would not release their names - they were afraid Tim Blixseth would throw them out of the club. Why would anyone join a club under those conditions? A bunch of millionaires afraid! This transcript was indeed a great read! Better than a Danielle Steele book! The testimony also appeared to be full of he said/she said, internet searches, and speculation of what a few people thought. The most interesting comment on page 205 (this was a result of due diligence) was that the overall response regarding Mrs. Blixseth was "that she was, in fact, the creator of what is known today as one of the greater family places in Montana." Too bad the only way to be part of that "great family" is that you had to have enough money to be invited to join! That's okay, I really prefer keeping company with the real "Heart of America" folks anyway.
This "drama" would make a great mini-series on the Soapnet Channel.
So EVERYONE on this site seems to be pushing for one side or another, and yet EVERONE is getting "played". Mr. Webber states that the comments on thsis site are from "deceivers", yet it seems obvious to me that BOTH of the Blixseths have been playing the media through "leaked" court documents and other financially specific details. People can speculate all they want, but in the end, we have two wealthy people, fighting over a divorce. let's look at the FACTS...
1. As a couple, THEY can not afford to opporate the club. (This is proven by the official court docs), and they surely can not do it individually.
2. There is NO INCOME...from any sources other than liquidations. The real estate market is in the tank, and dropping daily. That means that whoever BUYS OUT the other person, HAS to come up with CASH. In this case, Edra WILL HAVE TO (and this is per public docs) sell, or borrow to finance the purchase from Tim.
3. There have been at least two disclosed deals for the club which have fallen through...coincidentally when the suitors had a chance to look at the books. I would suspect that the same thing will hapen with Discovery Land Co.
4. Tim LOVED this club. Let's face it, it was a vanity play. Why would a superficially vain person like Tim Blixseth, give up his "baby", if he really thought it was worth more than what Edra is trading for? Unless of course he KNEW that she could not afford the club in the long run, and he would get it back eventually, and under better market conditions. that is just good business.
5. Tim had the bank "inflate" the value of the club in a great market, so that HE could take out what account as a personal loan for $395 million. From the public records, he squirled that money into his own coffers, not to mention buying his own land atb the club to make it "look" like a sale. The point is that the books have been "cooked".
In conclusion, you have an uncompleted club, with financial needs in excess of what either Edra or Tim can provide. The market is dismal, even for the ultra-rich, and shows no sign of turning around for many months if not many years. There is no possible way that either of them can spin these numbers. The only way out is a new owner. The club needs someone with deep pockets and the committment to see this through. The club needs a savior, not a bunch of one time minority partners.
All we want is the $250,000.00 promised to the
Roseburg High School Booster Club for the Football field. Tim made the commitment to donate the money 2 years ago this month and now the club is short the money to pay their debtor and our meeting this week to figure it all out since the work has been done. This has put the Booster Club in a real bind. Tim, How cound you have done this to your little High School in Roseburg, Oregon
Maybe some of you billionaire folks up there at the Yellowstone Club could give us a fundraising party to finish paying off our debts for the Roseburg High Boosters. Shame of you Tim Blixseth!
Mr. Adams,
I do not follow all your logic, however the points are noted in detail. I really believe its a matter of wait and see. Yellowstone Club is the only club standing in the west who yields to the elite. The elite will not let it fail. Money is all around us, however the only change is that the institutions are now forced to look at bottom line profits and not speculation 'Flips'. Homes, Resturants, Hotels, Inn's Retail shops, etc. The Banks just arent there to finance these deals at 90% and the exit strategy is not 2 years.
The market needed an adjustment and it was to say the least a big one. Everyone profited from these golden ages, people are bitter but the investors now must work harder to prove to those who invest in their funds that there is substance. The markets will come back, its a natural cycle. Deep pockets yes but more importantly running a profitable operation. How do you run a club with $18,000 per member as the WSJ reported? The financial logic is simply not there. Either members agree to move Annual dues up to a break even or the Clubs can't deliver the expected service, quality and expectaton. Lets face it, Yellowston Club has the best of the best for members and they demand quality and high levels of service. Real Estate sales will be very slow and because of this fact, clubs need considerable anout of cash to stay afloat. Money begets money. Vanity. Don't you love it!
Big Pee,
While I agree with wait and see, it simply can not be done by either of the Blixseths. That is all. The "current" residents may very well hope and plan to stick with the project, and may very well NOT let it fail. However, if the club is in the business of selling property, who will want to pay a premium (which i believe is deserved) for an uncompleted resort? Furthermore, how can ANYONE have faith in Tim or Edra, as they both lied to the media, residents and investors? Memebers demand quality, but you can't get quality on the budget that the current ownership has to work with.
Grizzly is right. The Yellowstone Club was a failed concept from the beginning, unable to sustain itself. There is no money to keep this club going, and Discovery Land can't be expected to be the "savior"....they don't have any money either to support this size of club. In the end, as Grizzy points out, Tim will win out to the detriment of Edra and all of the YC members. Its a sad commentary on the integrity of all of those involved in the YC.
Comment By grizley adams, 7-15-08Lemondisright- While i appreciate your kudos, i never said the "concept" was flawed or failed. There are 300 families who currently enjoy the lifestyle that the YC has to offer. The club itself is a great concept, as a lifestyle and an eventual investment. My point was simply that the CURRENT ownership is completely unable to fulfil the dream. This current real estate and financial market is no place for an undercapitalized divorcee to try and maintain, let alone expand a luxury club.
Comment By malcom, 7-15-08Lemond and Griz: I think you are on to a correct assumption. The club needs a signficant injection of capital, not a small amount of capital. Can I assume Gred Lemond is going to be paid as a first priority the remaining amount being 20 million and change? How does the Lemond camp feel with the news that Edra Blixseth has won the club and will live up to the promise to pay Lemond the money as stated in numerous court docs and press? Good news if true. Griz: are you assuming Discovery Land Co is not injecting money? I woul hope that Edra is selling a % of the club to them for a significant investment of at least 20 to 50 million and lets not forget that Sam Byrne is also still interested in this club and was rumored to be buying another land development talked about in the court documents for 56 million. Seems to me Griz that these funds help the club survive but maybe I am wrong? Lemond, completely agree that the club can only survive if Discovery Land Co and Sam Byrne can sell real estate and memberships while banks are being shut down in the USA and many people loosing their jobs on Wallstreet. Maybe Edra found a rich Russian to invest? Who knows but lets hope there is a Russian or Software investor in the mix.
Comment By Trish Lutke, 7-15-08Is this the same Tim Blixseth that owns Friday Records and Friday Publishing in Nashville TN?
Comment By grizley adams, 7-16-08malcom,
the lemond group has stated in the press that they don't care how it happens and by whom. They just want their money. Of course, this is the same position held by a number of other creditors as well. Remember that so far, all we have is a media report that states the Blixseths came to an arrangement. As far as I can tell, ownership/management has not changed. No one has been paid. Could this simply have been a ploy to stave off creditors for a short while? I would assume that SOMEONE is in talks with Edra to become a shareholder. She does not have any cash to do the deal, so she would need to shop, presumably a minority stake in the club. Whether it's Discovery, Byrne, Russians or a consortium of members, the potential investors will need deep pockets. I say this because their initial minority stake will become a majority stake when she runs out of the initial round of funding. $20-50 mil gets the ball rolling, but can't keep it rolling in this economy/market. in the end, you are correct. it's all about selling lots, and i would not want to hinge my success on ANY sales for the next 2 years. Someone special needs to step up and buy the club as a long-term investment, with no immediate plans to generate a profit for the next couple of years. Edra needs to bow out gracefully. If I were her, I would rather leave with dignity and some cash, than to get crushed by this economy and be left burning bridges in the community. If she is the actual owner, she is at a crossroads.
My take is that has anyone seen the transfer papers in Virginia City. I only wonder if this is a case of smoking mirrors as usual. Edra may not have been aware of all Tim's slippery money maneuvers, but as a wife there is no blind indifference. Although she is trying to do the right thing there is little evidence of change with management most of which are arrogant puppets for Tim. Tim has pulled many underhanded land deals to profit himself and screw equity holders (i.e. Ranchette property, CIP Sunrise Ridge, Superlot). So any deal with Edra must be questioned. I am sure Mr Slippery has retained some aspect of the property there. Remember, Cross Harbor's statement was something like "we can not obtain clear title to the property". Until Tim and all his lying and cheating croanies are gone there will not be change just more of the same. If he is truly gone then make their agreement public. Afterall, they are the ones who propagated their divorce in the public realm. So, let's see it!
As for Grizley's #5, let us not forget the VP and head of accounting that was cooked. Has the local Sherrif's department ever misled the public about deaths on club property because of bad press. I am aware of at least two. Questions, questions and more questions?
It is my belief that it will be very difficult to fund the Club's liabilities annually unless the market changes. Election time is a bad time historically with all the uncertainty. Many of the so called saviors will not be players until they can buy or fund on their terms
not the sellers. My personal thoughts are that eventually (10 yrs+,-) that Pioneer Mountain will be open to all to enjoy. It is a Montana treasure that everyone should have access to.
Sharkbait and Griz you see very close to some key facts. Please do share some more. Whats the issue on 'Cooked' mean?
I do not think we shall ever know the real deal as its a private matter is it not? Speculation is always a tricky subject. Lets stick to the facts:
1) Money is owed to Lemond in the region of 20m+ last court document sites the fact of interest and legal fees.
2) Bank payments or at least interest must be paid to Banks (public records show American Bank and Credit Suisse)
3) Suppliers must be paid but how much only the club knows.
4) The Club has unfinished works which were promised to current members. Investing in this now is throwing money away but if you do not members may also be negative to potential members when they come for a nice visit?
5) We can all imagine Edra had to pay something to Tim to win the club correct? Why else would Tim just throw his hand up in the air, he is a shrewed businessman as we all know. How much is the question.
6) Who is going to make the bank payments? How?
7) How many memberships have solf this year? Lots of Land? Condo Sales in Crossharbor's Sunrise Ridge?
Lets leave personal attacks away from the Blixseth and go straight to the facts on how the club is going to survive financially and what the new investment plan contains. I believe everyone would prefer to know this then what the actual deal was between Edra and Tim. Its easy to pick on them because they after-all created their own wealth and of course the big loan granted by Credit Suisse added to this wealth. Thats just good business. Our market today is the worst its ever been, oil is up, housing market in the tank, banks are in the tank, wall street is laying off everyone, homes are on the market in Conn / NY, Florida is in the tank, Dollar is worthless and given the speech yesterday from our Fed Chief its not looking much brighter so how in the Hxll can you sell memberships and land? Billionaires did not make Billions by being foolish did they? This club needs to sell land and memberships urgently but to whom? Tamarack went into trouble as it could not pay 6m in interest payments. Lets assume the Credit Suisse is the same rate afterall they did Tamarack as well at 8.5%, so from court records, this shows 305m of principle outstanding with the coupon of 8.5% annually. Thats over 25m or 2.1 per month. Now, based on court records, we know that annual dues range from 'FREE' to 22,000 per year. there are it mentions 285 members. Lets assume 35 members do not pay (Celebrities like Warren) so we have 250 members paying 22,000 = 5,500,000 per year. Thats 4 months of interest but lets not forget there is employees to pay, electricity, etc. So, here is the big question: HOW, WHERE and WHEN and from WHOM? Risk factor is high but the reward is also high. At least this was what Las Vegas though until its projects were stopped. 400 lots to sell and 400 memberships. 300,000 per membership x 400 members = 120,000,000 and 400 lots at 2m per lot = 800,000,000. Clearly some big numbers is it not? Is it worth a gamble to be adverse to the market and show the market Billionaires are still spending? At these levels if i were a Billionaire I would merely go take over the debt at Tamarack at a 25% discount and roll my own luck I guess. Its a beautiful club, almost like a movie set, in fact maybe it is? Is it real or made to look real?
Food and cakes for thought
what Malcom states is true. The numbers don't pencil out. Neither one of the Blixseths can afford the club. they could not even afford it TOGETHER without liquidating their other assets, which were fianaced at the height of the market with a loan against the club. It's not a personal attack to say that both of these people have lied up to this point. It's a fact. Edra and Tim are out for themselves, and to screw eachother. That is their business. The problem is that they are inadvertantly screwing the membership. With all of the other "deals" comming readliy available (Tamarack, Promotory, etc), they better figure this out soon as the smartmoney may go elsewhere.
Comment By malcom, 7-16-08Griz and Mr. Bait,
have you read the pdf files attached to the NEW WEST Article? The statement from Edra now has more weight to your arguments. Something is not adding up. By the way, WSJ have no update on the story either? Maybe someone should call the friendly WSJ and ask what is going on and if in fact the club has changed hands? Just a thought but appears this story has no end or it has ended?
Shark Bait-
I have been following these comments for the past week, and I have some questions for you, as you seem to have some sort of inside track.
1. who really is Discover land company and how successful have they been with properties like the YC? If at all?
2. If this discover company, or anyone else is going to invest in the project, why would they take a minority stake, especial with a partner who has a questional past in relation to truthfullness, and ability to run the investment at profit?
3. it was mentioned that credit suisse is owed $350 million? For what? Who has the $350 million now? What did they get invest it in? Is that part of the club? Who is paying on that now? Someone else mentioned that they owe 8% interest, so if they are not selling lots/memberships, where are they getting the money to pay the debt? Who IS paying the debt right now if ownership is in limbo?
4. in your opinion (since you sem to know so much), what do YOU think will happen in the next few months? Can either of the Blixseths make this work, or will one of them have to give up majority ownership in order to do anything?
Discovery Land Company is a high end Club/Resort developer with a proven track record. Michael Meldman, according to research, is the chairman. The company in other land developement appears to have some type of relationship with Westbrook Partners LLC whose founder
was/is William H Walton who is/was connected to Rockpoint Group LLC and Florida Rock Industries Inc and Morgan Stanley RE manager. How interesting that this company and Cross Harbor are both based in Boston and I would bet that the Principals know each other. What this tells me is Discovery Land Co seems to be dialed in with people with deep pockets and tremendous knowledge of high end developments. My research shows Mr. Meldman as a Stanford graduate and maybe some connections as there are a number of Stanford people who are members of the Club.
Now, if anyone or company were to invest into the Club, especially with debt load and judgements, they would be crazy not to have at least 51% interest. We are talking about immense monthly overhead as previously calculated by the above numbers blogger. I do not believe anyone will take a minority share.I think all Pioneer members got 50 years of free dues, and only the smart ones took the equity position as opposed to the buy down option.
The Credit Suisse loan was actually increased by Tim once he got the 1-1.2 billion appraisal. As the Club was virtually debt free before this loan, he may have felt entitled to take a supposed unsecured loan from the Credit Suisse proceeds. Does not this sound fraudulent; more like white collar crime to me. Maybe those connected to the KPMG audit can clarify. Some 175-200 million went into their hands, what for? All of their assets should have been frozen and held until a proper investigation was done. A Gulfstream 550 was expensed through the Club, maybe a Phantom or Bentley!? How much did Edra get paid to decorate the half finished lodge at that time? Maybe 9 million or so? Who really knows except Tim, Edra and the VP of accounting who died in the
house explosion in Oct 06.
I might travel to Virginia City to check land transfers and that may shed light on what will happen. People seem to forget that the players with ching to takeover will wait, as they always do in the economic down turn, until the Club is on the brink before anything happens. Just my own opinion; besides whoever thinks they know probably do not.
I forgot to mention does anyone know whether or not Tim paid Jim Dolan's father-in-law back the 50 million he still owed him? It would be nice if the tax people took a look at the flim-flam money controls and tax avoidance.
Oh, to comment on the bail out again. Maybe since our government is in the mood for bailouts the Blixseth situation might even qualify. Corporate owners or principals taking millions of dollars out of the company right before they fail. Quite similar don't you think?
I think that it is to soon to say that Edra will take over the club. When the deal becomes final then I will believe it. There have been to many deal that have not gone through. It seems like just more smoke and mirrors. Sharkbait and Griz what is this issue of "cooked" and the VP of Accounting? I am unaware of that issue.
Comment By malcom, 7-17-08Jesse,
I believe this relates to the unfounded investigation of the Accounting Officer who died in Montana in a gas leak in her house and the house left no trace of anything. It was ruled an accident and nothing more than this. You can search this in the press as its common knowledge and rather sad this person passed away in a freak accident weeks before giving evidence. No foul play was involved.
I think I agree with Jesse, many times a deal has been attepmted and all have failed. This is the 4 attempt to settle and again WSJ clearly was leaked the story like all the other times. New West is correct by saying the story does not end here. Its time to have New West call and ask if this deal is closed or not. We found in the sealed court records in Riverside Cali that a deal was signed and sealed but no was to know the contents. This is where the divorce is settled which relates to the press articles and statements, so it appears to be true the divorce is settled but is the club legally in Edra's name or not as Blixseth Group owns 94% of the shares according to court records. There must be a filing in Montana or Seattle showing a beneficial change of shareholding if in fact its true she wins the club correct? Can someone look into this? Edra it says in the court records owns Blixseth Family Investments which owns 5% of Blixseth Group. It was Blixseth Group isn't it who owns Yellowstone who took the loan with Credit Suisse so it should be easy to see if this is real or merely smoke and mirrors to avoid again not paying the bank and creditors? Maybe Tim and Edra are both merely buying time to find a solution and used the excuse that Edra wins the club to put all on hold like they did with the Sam Byrne deal? Sounds like a great time for Sam to re-enter the picture or merely go directly to Credit Suisse again like Edra's statement said and 'BK' Bankrupt the club by buying the loan notes? Where is Discovery Land Co? Maybe they did there homework like Sam Byrne and at the last minute backed out of the deal and left Edra with no partner? There is no press and no comment from Discovery Land Co anywhere on the net. Who knows more about this Dolan issue? They are the owners of Spanish Peaks when you google there name and also the press shows they are the ones who bought the Aviation business from Tim Blixseth and another link shows Dolan owning 33% of Tim Blixseth's Timber Company called Western something. Dolan it appears is a major financial backer of Tim Blixseth according to the search engines. So what is the story on the 50m owed to Jim Dolan's father? Does this relate to Spanish Peaks or another lawsuit? Please do tell.
Jesse,
The reference to 'Cooked' comes from the Feb 07 article called 'Paradise Lost' here is the statement made in the article:
The LeMond lawsuit was ugly from the start. According to the complaint, Blixseth threatened to kick LeMond and his fellow litigants out of the club if they filed the lawsuit, and in July 2006, Blixseth did just that. But on Sept. 22 the judge reinstated them. To make the atmosphere even more toxic around the Warren Miller Lodge, a club employee with knowledge of Blixseth's finances died a few weeks later. On Oct. 19, Denise Ann Touhy, the Yellowstone Club's VP of finance, died tragically at her Big Sky home from an explosion caused by a propane gas leak, according to a local press report quoting the Big Sky fire chief Jason Revisky. Dental records were needed to identify her body
That seems way to convenient that she died with knowledge of what was going on and was to be in the trial. Why hasn't anyone investigated it? I read the 'Paradise Lost' article and if club members think that it was foul play then why hasn't it been more looked into?
Comment By Malcom, 7-17-08Jesse,
It was investigated. There was no foul play and very little press either. Thats the way the buffalo chip crumbles. The secrets went up in smoke signals so to speak. Too bad WSJ does not have a blog as they really should be contacted. Halogen Report even believes like New West that the deal is all smoke and mirrors. Where is the proof and why is no one challenging the WSJ article? Maybe a reporter should call Sam Byrne, Discovery Land, Edra, Tim, and members for an update? I am sure Greg Lemond & family must know something. Court records in Virginia city show that Judge Tucker decided not to pass judgement as Edra was awarded the club and the Judge knows Edra promised to pay so the judge withheld judgement until Edra and Tim announce the deal is done. So maybe Virginia City Courthouse has our answers?
Giz and Shark,
I understand that something must coming up. Rumor in Seattle the apparent deal announced in WSJ is again falling apart. another rumor floating around the club is the first buyer and his team are back on the scene sniffing around. Is there a surprise coming up or is this merely gossip?
There were to my knowledge 4 or 5 insurance investigation the the explosion in Big Sky. I would be interested to know if the State Fire Marshals Office or Feds investigated?! The State was called! Many incidents up that way have been covered up by local authorities because the Club did not want bad publicity. Is there any connection between MacMillon(being Tim's boy) and why the Bozeman Chronicle did not report much on it, much less the investigation?! Malcolm, do you have any idea how much propane it would take to make matchsticks out of that size house? The explosion was felt some 6-8 miles away. If you really think it was a freak accident then, man, you need to open your eyes.
I do not believe anyone is crazy enough to buy the Club unless all current owners are totally gone. They have stolen, cheated, and lied about this for years. No sharp business executive would touch this unless all ownership is relinquished. To my knowledge the Clubs acreage was around 13K acres originally. There has been
a systematic peeling off of property by Tim at discounted prices to other LLC's which he is part of without the knowledge or consent of the minority owners. This, itself, is illegal! How could anyone trust the Blixseths and how much real property is left to sell?
I have heard Dolan's father-in-law who controls billions in investments lent monies of around 65 million to Tim either directly or indirectly while he was waiting for Credit Suisse. Shortly there after some 15 milion was paid leaving 50 million outstanding. I understand the father-in-law was very upset at Dolan and Tim. Did it get repaid? Tim's behind the scene dealings and maneuvers which most of the public do not know is why these sale deals continually fall through. He can not even be honest with himself much less anyone else. Ask Joe from Ennis he will tell you what others say, "Psychopath". That what Tim is. Remember when people do business together that tells you something. Birds of a feather flock together!
Malcolm, actually I believe there are 7 members who hold 8% unless Blixseth bought some back which I doubt. So, your BGI numbers are off a bit. Your lack of compassion for Denise is telling.
It seems like you think it is OK for this to happen. IT IS NOT! It may have been timely, but no freak accident!
Sharky,
First, I simply did not want to argue a death as that is a very serious charge. I think you mis-read my statement, rather its 1 in 100 billion of a chance that an explosion could happen to the single person who just so happened to have some great secrets so close to the Lemond case. I just believe that if investigators found nothing its too serious to point fingers on such charges, freak accident or not, its a very serious charge to make without proof, albeit the odd timing from such a gas leak?
I do not follow the Dolan deal but if its true why would somebody simply sit back and not collect 50m? Maybe this was taken care of by giving shares in Tim's lumber company? Clearly if this is true its another stand in line situation but nothing in the press so it seems not to be an issue.
The only person who has a significant investment in the club is Sam Byrne, as it was reported he owns the entire Sunrise Ridge Condo Development and in Edra's court statement it shows that Tim borrowed 12m from Sam Byrne's company who was trying to 'BK' the club as stated. Discovery Land co is mentioned but the only person with 100m in the club now is Sam Byrne through his fund and it makes sense he would want to protect his investment and credibility with his fund in who runs the club and the direction of the club. Its a long shot but clearly not out of the question that he is part of some new deal? Again, looks like smoke and mirrors. No one is complaining and it appears no one is asking for money are they?
Sharky and Griz,
Here is the update and rumors over the weekend direct from the Club. Employees have stated that Tim Blixseth was over-heard at the club talking with some friends and that he is frustrated to wait on Edra Blixseth to close the transaction any longer. Apparently the deadline was last Friday and nothing transpired. Those around Tim stated that Sam Byrne is doing a joint venture with Edra Blixseth but neither of them have come up with the funds yet to pay Tim off. Employees are very excited to have Edra Blixseth in the club but also nervous that the deal falls through. More later.
Thanks for the update malcom. in the meantime, WHO is making payments on the debt? I mean, while Edra and (Sam, Discovery, or whomever) is trying to scrounge up the few mil to pay of Tim, who is making the past and current payments on the club, not to mention the penalties accruing?
At what point do the creditors, including LeMond, just come in and start taking things? How long will they be able to stretch this out until the judge, creditors and employees get fed up?
The hole is getting BIGGER!