Is It Blixseth Bargain Time?
We first heard in December that Tim Blixseth has placed Emerald Cay, his private island, up for sale for $75 million. Now that it has been on the market for six months for the same price it may be time for a price cut. It's more expensive than other Caribbean private islands but the five-acre private island, located off the coast of Providenciales is a complete compound. It has a guest house, a 'floating' tennis court, swimming pool, a gym, movie theater, three-story library and a wine cellar that holds 8,000 bottles. The island also has a several docks and a manmade beach. It connects to the mainland via a retractable bridge. Blixseth had planned to rent the property out as part of the Yellowstone Club World property portfolio. Even though it is a beautiful property which cost millions to bring to its current state of glory if Blixseth wants to sell he's probably going to have to adjust his expectations. After all, he's got bills to pay.
Meanwhile, it's liquidation time for Tim Blixseth's ex-wife Edra. A judge has converted her Chapter 11 bankruptcy case into a Chapter 7 liquidation proceeding. An independent bankruptcy trustee will see that proceeds from the sale of assets named in the Yellowstone Club bankruptcy action are turned over to creditors. Blixseth's Yellowstone Club was sold in a court-approved deal to Boston-based CrossHarbor Capital Partners for a bargain basement rate of $115 million. Tim Blixseth had turned the club over to his wife as part of their divorce settlement. Edra Blixseth also owns Porcupine Creek, a 240-acre estate in Rancho Mirage, California. For a while she's had Chateau de Farcheville, a medieval castle in France that comes with a moat, hunting grounds and its own helicopter pad on the market for $57 million. The St. Andrews golf estate in Scotland is also for sale. Edra Blixseth also owns significant collections of furniture, fine art, diamonds and other jewelry valued at $2.6 million, a 2004 Rolls Royce Phantom, a 2006 Aston Martin, and a 2007 BMW.
The Desert Sun reports that Riverside County records show a Notice of Default recorded against the Porcupine Creek estate on Jan. 7 by Stewart Title of California Inc. to secure obligations in favor of CIP Yellowstone Lending LLC for notes against the property totaling $36.6 million. CIP Yellowstone Lending LLC is a company run by Yellowstone Club member Sam Byrne, the founder of CrossHarbor Capital Partners. Two other notices of default have been recorded in Riverside County against Porcupine on Feb. 10 and March 26 and a state tax lien against Porcupine Creek in the amount of $2.1 million is also on file.
Edra Blixseth is fighting liquidation saying that she shouldn't be punished for having "poured her heart and soul" into the restructuring of the Yellowstone Club. She says she didn't abuse the bankruptcy process as the judge has claimed and that she is committed to working out her debt situation. The Wall Street Journal reports that in court papers filed on Friday Blixseth said she now has insurance to protect all her assets. She has plans to sell off some properties and find ways to make money off of others. She has also pledged to collect payments owed to her, including spousal support owed to her by Tim Blixseth. Her persuasive argument is that if the case is switched back to Chapter 11 she can work to restructure and bring in millions of dollars and pay her debts whereas if she must quickly liquidate it will result in major losses.
UPDATE: The judge rejected Edra Blixeth's plea to reorganize her finances.
Edra Blixseth is fighting liquidation saying that she shouldn't be punished for having "poured her heart and soul" into the restructuring of the Yellowstone Club. She says she didn't abuse the bankruptcy process as the judge has claimed and that she is committed to working out her debt situation. The Wall Street Journal reports that in court papers filed on Friday Blixseth said she now has insurance to protect all her assets. She has plans to sell off some properties and find ways to make money off of others. She has also pledged to collect payments owed to her, including spousal support owed to her by Tim Blixseth. Her persuasive argument is that if the case is switched back to Chapter 11 she can work to restructure and bring in millions of dollars and pay her debts whereas if she must quickly liquidate it will result in major losses.
UPDATE: The judge rejected Edra Blixeth's plea to reorganize her finances.
