Published:
Views: 3020

Sold! Montana’s Yellowstone Club Goes for $115 Million

CrossHarbor Capital Partners LLC paid $115 million to buy Montana’s Yellowstone Club out of bankruptcy court yesterday. The Boston-based private-equity firm agreed to pay $35 million in cash and assume $80 million in debt owed to Credit Suisse. CrossHarbor will also infuse up

yellowstone-featured

CrossHarbor Capital Partners LLC paid $115 million to buy Montana’s Yellowstone Club out of bankruptcy court yesterday. The Boston-based private-equity firm agreed to pay $35 million in cash and assume $80 million in debt owed to Credit Suisse. CrossHarbor will also infuse up to $75 million in working capital.

CrossHarbor’s principal, Sam Byrne, is a Yellowstone Club member, and has been closely following its fortunes. In 2008, CrossHarbor attempted to acquire the club for $450 million.

According to the Bozeman Daily Chronicle, the sale capped a week of non-stop negotations in the court of federal bankruptcy Judge Ralph Kirscher. The only other bidder was Credit Suisse, which in 2005 loaned $375 million to Tim and Edra Blixseth, the now divorced couple who jointly founded the club.

As part of the final deal, Credit Suisse will be allowed to co-invest in the club with CrossHarbor. Credit Suisse also received additional assets, including Yellowstone Club real estate and a castle in France that the Blixseths had acquired. Unsecured creditors were recognized by the court as $19 million was set aside to pay local vendors, tradesmen, and others.

This marks the second major bankruptcy ruling in as many months involving Credit Suisse. In April the Promontory Club outside of Park City, Utah, sold to the Pivotal Group for $30 million. Credit Suisse had put together a $350 million loan package for Pivotal, which it used to develop the resort community before seeking bankruptcy protection.

According to the CrossHarbor website, the LLC “is an active investor in the distressed securities market. We invest in a wide variety of securities including real estate loans, corporate loans, and structured securities that are suffering from stress including monetary and/or technical defaults.”

Read more at:
Cross Harbor Wins Yellowstone Auction,” Bozeman Daily Chronicle, May 18, 2009.

Tagged with: , , , , , , ,
Posted in Bankruptcy, Developers, Eric OKeefe, Feature, Golf, News Desk, Recreation, Regional News, Residential Property, Timber, West

2 comments on “Sold! Montana’s Yellowstone Club Goes for $115 Million

  1. Tom says:

    Congratulations on buying the Yellowstone Club—maybe you’d like to step up and buy Tamarack, another high-toned, high-dollar ski resort gone bust [in Idaho]. Blixseth deserves to spend time in Deer Lodge, but only if he pays the State of Montana for the privilege of prison time. Good riddance.

  2. The Yellowstone Club was a bold new concept that suffered greatly in execution. We have followed the legal troubles and the discrepancies in their aquatic construction. They did not appear to think long term to which this news attests.

    Tamarack was a very interesting case. Expert skiers knew it would not offer premier quality snow, but since there were few ski area investment options, the more recreational skiers swarmed to the site. We have done work in the area and it does have merit, but, as with many areas, it was over hyped.

EMAIL SIGNUP

Please sign me up to receive breaking news and updates from the Land Report!

Latest Tweets

News By Region

The Land Report | 2018 America's Best Brokerages
The Land Report is proudly partnered with:
Land Leader
Hall and Hall
Bates Land Consortium
Mossy Oak Properties
United Country Real Estate
Live Water Properties
Fay Ranches Inc.
Mirr Ranch Group
californiaoutdoorproperties.com
Whitetail Properties
Western Ranches
TerraStone Land Company
Hayden Outdoors Real Estate
LandAndWildlife.com
Pacific West Great Plains Great Lakes Midwest Southwest South Northeast Pacific West Great Plains Great Lakes Midwest Southwest South Northeast