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The Tour de France might come to seem less grueling -- and certainly less murky -- than Greg LeMond's two-year legal fight against the Yellowstone Club, which he resumed this week when he asked a Montana judge to order club owner Edra Blixseth to pay him the final $13.5 million of a $21.5 million settlement, a Bloomberg story says. The judge granted LeMond's request, but the cycling great, who won the world's top cycling race in 1986, 1989 and 1990, will have to get in line for his money. The Yellowstone Club, which Edra Blixseth only won control of in August after a long and bitter public divorce with former timber executive Tim, filed for Chapter 11 bankruptcy on Nov. 10.
In her filing in U.S. Bankruptcy Court in Butte, Montana, Blixseth tallied the club's debts at about $350 million. The biggest liability is $307 million, not including interest, to Credit Suisse Group. The Zurich-based bank loaned the club $375 million in 2005.

LeMond Continues Long Legal Fight With Yellowstone Club

The Tour de France might come to seem less grueling — and certainly less murky — than Greg LeMond’s two-year legal fight against the Yellowstone Club, which he resumed this week when he asked a Montana judge to order club owner Edra Blixseth to pay him the final $13.5 million of a $21.5 million settlement, a Bloomberg story says.

The judge granted LeMond’s request, but the cycling great, who won the world’s top cycling race in 1986, 1989 and 1990, will have to get in line for his money. The Yellowstone Club, which Edra Blixseth only won control of in August after a long and bitter public divorce with former timber executive Tim, filed for Chapter 11 bankruptcy on Nov. 10.

In her filing in U.S. Bankruptcy Court in Butte, Montana, Blixseth tallied the club’s debts at about $350 million. The biggest liability is $307 million, not including interest, to Credit Suisse Group. The Zurich-based bank loaned the club $375 million in 2005.

That loan is what prompted LeMond to sue the club, which Edra and her then-husband Tim co-founded in 2000. In his 2006 complaint, LeMond claimed that the Blixseths took $209 million as a dividend for themselves and didn’t share it with other investors, including LeMond, his wife’s parents, and his friend, investment banker Jorge Jasson.

Edra won the club this year in her divorce from Tim, 58, and promptly settled with LeMond. As part of the settlement, Edra signed an agreement with LeMond and his group allowing them to seek a judgment against her if she didn’t make the second payment, according to LeMond’s court filings.

The judgment puts LeMond close to the front of the line of those owed money by Blixseth and is backed by Blixseth’s 160-acre home at the club, Bloomberg reported. But Sam Byrne of CrossHarbor Capital Partners also has a lien on the Blixseth’s Yellowstone Club home, as well as her Palm Springs mansion on a private golf course. Byrne’s lien is ahead of LeMond’s.

About Robert Struckman

Comments

  1. Privatepowder says:

    New West oldnews but it was in your blogs…

  2. Natacha says:

    This story is getting old. When is the club transferring to Sam Byrne. Everyone lost money and there is no hope in sight for this club. Well done founders!

  3. alex says:

    Sam Byrne? The club is for sale, and the last time I checked, you had to have money to buy something for sale. Now, I may not be a financier, but I do read the paper. Sam Byrne is tapped out. He already has a train wreck with the condos up here, his fund has been bleeding money for over a year, and I fail to see how buying, or even stealing it through the Blixseth bankruptcy is going to change the fact that THERE ARE NO BUYERS FOR THE LOTS. Whatever cash is forked over for the Yellowstone Club, needs to be immediately followed by more cash to finish the current projects, even more cash to start the new projects, and even more cash still to fund this thing until it can sustain itself through land sales and memberships. World economists are now pushing out any turnaround in the global economy till late 2010. Can anyone explain to me how Sam Byrne is going to pull that off? Someone out there has the money and the time to wait for this project to materialize, but it clearly aint Sam Byrne.

  4. bearbait says:

    Wouldn’t it be neat if when you brought any New West Yellowstone Club story up on your computer, the theme from the Paul Newman move “The Sting” would play?

  5. Porkerscreek says:

    Apparently Edra is unable to pay the employees in Rancho Mirage as paychecks are well overdue and has resorted to a food handout.

  6. Natacha says:

    Porkerscreek

    What does that have to do with Yellowstone? Who cares about staff in Rancho Mirage and her private golf estate

  7. Natacha says:

    Alex

    We are calling it Jellystone Club now. No one wants to be a member anymore and all want to file a civil suit against the founders.