Yellowstone Club Fights Another Financial Challenge

by Deidre Woollard (RSS feed)
Jan 29th 2009 at 7:02PM

More troubles are facing the Yellowstone Club, which filed Chapter 11 last November. Now four creditors are suing the Yellowstone Club World resort for $4.65 million. The club was created by Tim Blixseth to take the Yellowstone Club concept and turn it into a global offering. Members signed up for the chance to stay in four multimillion dollar estates around the globe and paid a $1.5 million deposit. But because there wasn't enough interest the club never got off the ground and Blixseth let go of the idea after he turned over the Yellowstone Club to his ex-wife Edra. The four estates in question were split between the couple with Edra Blixseth getting the golf resort in Scotland and a castle in France and Tim Blixseth getting an estate in Mexico and a private island in the Caribbean. Now Tim Blixseth has put the island up for sale for $75 million and Edra Blixseth is trying to sell the castle, Chateau de Farcheville, for around $65 million (you can see pictures from the castle's rental listing here).

The four creditors are trying to force a liquidation of the entity's assets in order to get their money back. Meanwhile, Edra Blixseth faces a reorganization deadline of February 13 on the original Yellowstone Club, which has debts approaching $400 million. According to an AP article, a spokesperson for Edra Blixseth says just the membership deposits were considered assets of Yellowstone Club World, meaning that the properties may be separate and could be kept safe. Tim Blixseth sent an e-mail to The Associated Press saying that he no longer has any involvement in the Yellowstone Club World membership. He took a small dig at the ex, adding "too bad she did not honor her obligation." Two years ago, the Wall Street Journal praised the couple's amicable divorce but things have changed dramatically and the ongoing battles have weakened the finanical portfolios of both partners.

Tags: edra blixseth, EdraBlixseth, tim blixseth, TimBlixseth