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.

Like this story? Get more! Sign up for our free newsletters.