Yellowstone Luxury Resort update no7

It would appear that the on-going drama at the Yellowstone residence club is not over after all. Ex co-owners Edra and Tom Blixseth (now divorced) were back in court on Tuesday as Ms. Blixeth’s appealed against the judge’s decision to force her into chapter 7 bankruptcy, meaning the forced, immediate sale of all her personal assets. She argued for time to craft a business plan in the hope of retaining her substantial fortune.

But it was not to be. Amongst the many creditors and lawyers arguing to have her assets seized and sold immediately was her ex-husband Tom, who is claiming to be owed at least $18 million. Ms Blixeth listed $157 million in assets and admitted to debts of $357 million.

Several hundred million dollars “disappeared,” from the club and both Blixeths are pointing the finger at each other. Edra is arguing that false claims have been made against her, and that Tom misled her during the divorce. According to AP, after the hearing, Edra said:

“I’m disappointed, but we’re not going to just give up and roll under a rock. We’re going to try to regroup and figure out the best way to maximize the value of the assets.”

She also claimed that if she had been allowed to sell her 240-acre Californian estate in her own time, “It would not only go up in value substantially, but trying to do a sale where people know it’s in Chapter 7 could bring in — I don’t want to use the word but that’s what they are — bottom dwellers.”

Which is a bit rich considering the Yellowstone club has been sued by environmental organizations on numerous occasions, was fined $1.8 million by the Environmental Protection Agency back in 2004, she has already been through one personal bankruptcy and two hundred million dollars are missing.

We have followed the story for some time and it looks like providing more entertainment for the foreseeable future. I am waiting for Credit Suisse to start looking more aggressively for the money, because I think they will not be able to quickly sell the French Chateau the judge fobbed them off with.  The story unfolded over the last few months – starting with Greg Lemond’s lawsuit. I suspect we will be seeing many happy lawyers around this for some time. The story so far:

1. Yellowstone files chapter 11
2. Update no 1
3. Yellowstone drama continues
4. Yellowstone resort loan ruled predatory
5. Update on Yellowstone
6. Yellowstone drama comes to an end (not)