Yellowstone Club Fallout
Yellowstone Club Owner Edra Blixseth Files For Personal Bankruptcy
By Jonathan Weber , 3-27-09
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| Edra Blixseth at a court hearing last year. Photo by Alexia Beckerling | |
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Yellowstone Club owner Edra Blixseth filed for personal Chapter 11 bankruptcy protection on Thursday, adding a new twist to the complex financial drama surrounding the bankrupt club.
Blixseth owes money to a wide array of entities, including banks in California and Montana, a real estate finance company in Colorado, and a range of individuals, including a number of club members. While the bankruptcy filing named 27 creditors, that list is likely to grow. The filing says Blixseth has assets of $100 million to $500 million, and debts of $500 million to $1 billion.
Blixseth gained ownership of the Yellowstone Club last August following her divorce from Tim Blixseth. But the club, a private ski and golf resort for the mega-rich located near Big Sky, Montana, was in deep financial trouble as a result of the real estate meltdown and dubious financial management, and was forced to file bankruptcy in November. Blixseth had expected to receive significant proceeds from a $60 million sale of the Chateau de Farcheville in France - one of the properties that was supposed to be part of the failed Yellowstone Club World venture - but that deal fell through amidst the financial crisis last fall.
While Blixseth has significant assets, including a 280-acre estate in Palm Springs, those assets are either heavily encumbered with secured loans, unsaleable in the current market, or both.
Sam Byrne and CrossHarbor Capital Partners have been working closely with Blixseth on a rescue plan for the club, and lent her $35 million against the Palm Springs estate. That loan is now in default. The personal financial relationship between CrossHarbor and Edra Blixseth has come under heavy scrutiny in the Club’s bankruptcy court proceedings.
The U.S. Trustee, who oversees all bankruptcy cases, on Friday filed a motion to dismiss Edra Blixseth’s case on the grounds that she had not obtained credit counseling services prior to the filing - a requirement in any personal bankruptcy.
Blixseth issued a statement Friday afternoon stating that: “There were a number of important factors that contributed to my decision, including the difficult economic environment that has prevented me from selling some of my key assets, and the recent legal actions that have been filed against me and my family by people specifically intent on causing me irreparable harm.”
The statement also said: “There are individuals and groups, including my ex-husband and his attorneys, led by Mike Flynn, who I believe have sought to undermine my good work, make false and hurtful allegations against me and my family, and done everything in their power to blame me for the mistakes and questionable activities that occurred under their watch.”
The full text of the statement is posted here.
Michael Flynn, responding to Edra Blixseth’s statement in an email to NewWest.Net, stated in part: “I have been investigating Ms. Blixseth and Cross Harbor Capital in connection with their pre-planned bankruptcy which effectively killed the Yellowstone Club and ten years of blood, sweat and tears of Mr. Blixseth to build it. I have been investigating New West and its bloggers who have been unmercifully attacking Mr. Blixseth....Had the Club sale to Cross Harbor gone through, there would be no bankruptcy proceedings....Cross Harbor is now the “stalking horse” bidder to buy the Club at a fraction of the original contract; and Ms. Blixseth owns the Club. These matters arise out out of Ms. Blixseth’s decision in her divorce proceedings to wrest control of the Club through her lawyers, one of whom is a supposed bankruptcy expert.”
This story has been updated from its original version.
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Comments
Now if this does not upset the apple cart I do not know what will. Not surprising but what is sad is all the friends and members who loaned money to Ms. Edra Crocker-Blixseth. I sure hope she told those friends and members ahead of time prior to filing as some of them gave her between 250K to 1m on a personal basis.
I am not one to kick a person on the ground but we all must realize who was loaning her money and knowing she could never repay anything.
Now, I do not understand how she files Chapter 11 and staff at Porcupine Creek inform us her Chef, Massage Person, Personal assistant and telephone Operator are still employeed? What the hell is up with this. Get a grip on life and wake up! Some of us out here were thrown to the streets and she thinks its ok to have servants and she owes this kind of money? Can someone please blog in on this excessive spending? Also, SB/CH now what happens to your plan of hard-balling Edra into doing what you want for the courts? Edra has lost everything apart from a place to live while your new Rancho mirage estate sells? More to follow as I believe many members and friends who loaned Edra money are now going to come out and tell the truth about the august transaction with Sam Byrne and DLC. I think many are going to be shocked who spills the beans on this cooperation between SB and Edra. Members are going to be shocked at both!
These were written in the My Desert New. Your local paper. This is your staff speaking. DO YOU GET IT? Who do you blame for them feeling this way. I know people on this blog will never understand but to read Ms. BLIXSETH statement tonight is the biggest slap in the FACE. Look in the mirror! You owe us all an apology. GET you press guy fired. How the hell are you paying him anyway EDRA? Read what your employees are writing on the blog in the palm springs paper! http://www.mydesert.com I copy and paste this so everyone here understands how upset people are tonight.
Editor: These are relevant and if she is allowed to attack and blame others then she must realize her former staff, friends and employees have a right to insure everyone knows the truth and how everyone feels. EDRA. WAKE UP and DO THE RIGHT THING
comment wrote:
I think Shelter From the Storm needs a new executive director if this is the type of people she hangs with!!
3/10/2009 4:17:11 PM I think Shelter From the Storm needs a new executive director if this is the type of people she hangs with!! comment
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comment wrote:
On April 4th. I'd love to join her at her party!! I have a couple questions I'd love answers to...one is whether or not she's still getting banged by her gigolo in Malibu, the other is why did her house in Thunderbird Country Club burn down after she was rejected for membership at Thunderbird? Just two small questions...Shouldn't be too hard to get an answer should it?
3/10/2009 4:14:56 PM On April 4th. I'd love to join her at her party!! I have a couple questions I'd love answers to...one is whether or not she's still getting banged by her gigolo in Malibu, the other is why did her house in Thunderbird Country Club burn down after she was rejected for membership at Thunderbird? Just two small questions...Shouldn't be too hard to get an answer should it? comment
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caddycreek wrote:
Could Lynn Moriarity's lips be anymore attached to Edra's backside? Lynn probably got a call from Edra asking her to write this. Those two are peas in a pod. So predictable. Maybe while Edra opens her door to welcome people in, the people she owes money to could be the first in line...or perhaps the police can finally arrest her and send her to live with Bernie Madoff in a prison cell.
3/10/2009 9:39:23 AM Could Lynn Moriarity's lips be anymore attached to Edra's backside? Lynn probably got a call from Edra asking her to write this. Those two are peas in a pod. So predictable. Maybe while Edra opens her door to welcome people in, the people she owes money to could be the first in line...or perhaps the police can finally arrest her and send her to live with Bernie Madoff in a prison cell. caddycreek
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PCEmployee wrote:
Replying to porkerscreek:
It is not a legend that Edra has not bothered to pay all of her Porcupine Creek employees since November. Perhaps they can pass the hat at the fundraiser to collect money for food, rent and living expenses for these employees who are still suffering.
Sad, but true. Promise after promise after promise for over 4 months; and still no money. Maybe the rich just assume that us poor people simply live on love! So even though Edra's employees still have not been paid, at least she has brought back to work, her massage therapist and personal chef. I guess the rich can only suffer so much.
3/9/2009 9:14:15 AM
So lets air this in the public shall we? FLYNN is actually making some points. Are they refuted or are you just making a statement and now hiding? Tell us the TRUTH.
EDRA, How in the hell can you maintain this FAKE BS. Only you know the TRUTH with CH / The /Loan / The strong muscle/ and what drove you here! Bad Markets my butt. You have a borrowing problem. At least MADOFF admitted his guilt and feels better. ITs not to late EDRA, CS, THe bond Holders, THe members, your friends who loaned you money, your staff DESERVE Better than this. So you were nothonest under oath, who cares, make up for it now!
Take a breath of air once in awhile! What are you so manic about? I actually thought you were presenting some good information until you just attacked Edra's character. You really did not need to add those comments, which thats what they are "comments" not "facts." You have now lowered yourself to the same level as those other scum bags that have been spewing venum at her. I hope she rats on all of you snakes and bring you all down! Blockhead, is that what your are so manic about? You are on the list, aren't you....
It's time for Jonathan to ban you from this Blog! I personally can't read one more word written by you.
Edra, HONEY, I'd say the one person who's done you the most "irreparable harm" is your PLASTIC SURGEON.
Did you honestly pay someone to do that to you???