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Luxury Resort Sells for $115M in Ch. 11 Auction

BOSTON-The luxury Yellowstone Club resort in Butte, MT has been sold to a Boston-based investment firm for $115 million as part of a bankruptcy auction.

By Maria Wood | Updated on May 21, 2009

BUTTE, MT-Yellowstone Club, a luxury private resort here, has been sold in a bankruptcy court-led auction for $115 million. CrossHarbor Capital Partners of Boston emerged as the winning bidder.

According to an AP report, of the $115 million CrossHarbor will pay for the club, $35 million is in cash with the other $80 million in the form of a promissory note to Credit Suisse. Under the agreement reached earlier this week, a claim that Credit Suisse drove the resort into bankruptcy with a fraudulent $375-million loan was dismissed. Credit Suisse also retains the option to buy at stake in the new CrossHarbor investment.

However, according to the AP report, former club owner Tim Blixseth still faces charges that he breached his fiduciary duty to the resort when he used most of that $375-million loan, made in 2005, to pay down personal debts and buy luxury estates in Scotland, France and Mexico.

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