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Declaring that Credit Suisse actions in making a $375 million loan to the Yellowstone Club were "so far overreaching and self-serving that they shocked the conscience of this court," U.S. Bankruptcy Court Judge Ralph B. Kirscher on Tuesday ruled that Credit Suisse's secured claim to $232 million of the remaining $310 million loan balance would be "subordinated" to the claims of tradesmen, vendors and other unsecured creditors in the case. The ruling, which follows a week-long trial in bankruptcy court, vastly complicates Credit Suisse's effort to buy the club in an auction slated for tomorrow. It could also expose the bank to numerous claims from both the institutional investors to whom it sold the Yellowstone Club debt, and from those damaged by similar Credit Suisse loans made to Tamarack Resort, Promontory, Lake Las Vegas and a number of other resorts around the world. At the same time, Kirscher's decision makes it likely that most other creditors will get a good chunk of their money. "The main thing is that the moms and pops and small businesses will get paid first, and that's how it should be," said J. Thomas Beckett, the Salt Lake City-based attorney for the Unsecured Creditors Committee and leader of the litigation against Credit Suisse. "This is substantial justice."

Citing “Naked Greed,” Judge Eviscerates Credit Suisse in Yellowstone Club Case

Declaring that Credit Suisse actions in making a $375 million loan to the Yellowstone Club were “so far overreaching and self-serving that they shocked the conscience of this court,” U.S. Bankruptcy Court Judge Ralph B. Kirscher on Tuesday ruled that Credit Suisse’s secured claim to $232 million of the remaining $310 million loan balance would be “subordinated” to the claims of tradesmen, vendors and other unsecured creditors in the case.

The ruling, which follows a week-long trial in bankruptcy court, vastly complicates Credit Suisse’s effort to buy the club in an auction slated for tomorrow. It could also expose the bank to numerous claims from both the institutional investors to whom it sold the Yellowstone Club debt, and from those damaged by similar Credit Suisse loans made to Tamarack Resort, Promontory, Lake Las Vegas and a number of other resorts around the world.

At the same time, Kirscher’s decision makes it likely that most other creditors will get a good chunk of their money. “The main thing is that the moms and pops and small businesses will get paid first, and that’s how it should be,” said J. Thomas Beckett, the Salt Lake City-based attorney for the Unsecured Creditors Committee and leader of the litigation against Credit Suisse. “This is substantial justice.”

Kirscher’s ruling was only a partial judgment and did not address any of the claims against Tim Blixseth or the allegations of breach of fiduciary duty; they will be decided at a later time by the Judge. But the tone of the order suggests that Kirscher found the case brought by the unsecured creditors committee and the club itself against Blixseth and Credit Suisse to be quite convincing. In particular, he found that Credit Suisse’s appraisals of the property and related due-diligence were scandalously lacking and all but guaranteed the eventual failure of the club.

“The only plausible explanation for Credit Suisse’s actions is that it was simply driven by the fees it was extracting from the loans it was selling, and letting the chips fall where they may. Unfortunately for Credit Suisse, those chips fell in this Court with respect to the Yellowstone Club loan. The naked greed in this case combined with Credit Suisse’s complete disregard for the Debtors or any other person or entity who was subordinated to Credit Suisse’s first lien position, shocks the conscience of this Court,” Kirscher wrote.

“While Credit Suisse’s new loan product resulted in enormous fees to Credit Suisse in 2005, it resulted in financial ruin for several residential resort communities. Credit Suisse lined its pockets on the backs of the unsecured creditors. The only equitable remedy to compensate for Credit Suisse’s overreaching and predatory lending practices in this instance is to subordinate Credit Suisse’s first lien position to that of CrossHarbor’s superpriority debtor-in-possession financing and to subordinate such lien to that of the allowed claims of unsecured creditors.”

While about $310 million remains on the Credit Suisse loan balance, the bank conceded last week that the collateral for the loan – most of the assets of the club – was now only worth $232 million. As a secured claim, that $232 million would normally be the first thing to be paid (after the $25 million in interim, or “debtor in possession” financing provided by CrossHarbor), but it will now be put at the back of the line.

Credit Suisse spokesman Duncan King said: “We are disappointed in this ruling and disagree with the court’s findings. We are weighing our options at this time.”

Kirscher stopped short of voiding the Credit Suisse loan entirely, or forcing a payback of interest and principal that had already been paid. And Credit Suisse will still be allowed to bid for the club in the auction with a so-called “credit bid,” in which money that an entity is owed can be used as a form of payment. But Credit Suisse will now have to provide cash to pay off unsecured creditors as part of any credit bid, in addition to the cash any bidder would be required to provide to support club operations.

Beckett said he expected the amount owed to unsecured creditors to be in the $20 millon to $25 million range.

The Judge did not put all claims ahead of Credit Suisse; the member claims, involving their deposits, are already provided for in the reorganization plan (the auction of the club is the central feature of the reorganization plan). And some claims, including those of Greg LeMond, are being disputed and thus will not be paid automatically. It also remains unclear how much money will be available to pay the creditors in the wake of the auction.

Judge Kirscher, in his order, reviews case law to determine whether his ruling is an “abuse of discretion,” and concludes that it is not. The kind of conduct that justifies subordination of a secured claim generally includes “gross misconduct amounting to fraud, overrreaching or spoilation,” or “gross and egregious misconduct,” according to precedent cited by Kirscher. Those terms do not bode well for Credit Suisse when it comes to a final decision on the other claims against it in this case, and potentially in other cases as well.

“It’s troubling that so many similar resort developments were similarly crushed by this loan product,” said Troy Greenfield, an attorney with Bullivant Houser Bailey in Seattle and one of the lead litigators for the club. “Hopefully those that were affected will now have the chance to have responsibility allocated, as in this case.”

A PDF of Judge Kirscher’s full ruling can be found here.

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Comments

  1. ohplease says:

    from the interim order

    “Credit Suisse’s actions in the case were so far overreaching and self-serving that they shocked the conscience of the Court.”

    “In addition to turning a blind eye to Debtors’ financial statements, Credit Suisse’s due
    diligence with respect to the $375 million loan was almost all but non-existent. Credit Suisse spent a fair amount of money on legal bills to ascertain that the Debtors did in fact own the property at the Yellowstone Club, and Credit Suisse also spent a fair amount ensuring that it was not violating any laws with its loan product. Credit Suisse, however, did little financial due diligence. Barcy testified that Credit Suisse was aware that Cushman & Wakefield had appraised Debtors’ assets in 2004 and thus either knew or should have known that the collateral that Blixseth proposed for the Credit Suisse loan had a fair market value of $420 million in
    2004. The Court highly doubts that Credit Suisse could have successfully syndicated the Yellowstone Club loan if the loan to value ratio was 90 percent. Thus, Credit Suisse instead
    commissioned Cushman & Wakefield to employ its newly devised valuation methodology. In applying the new valuation methodology, Credit Suisse relied almost exclusively on the
    Debtors’ future financial projections, even though such projections bore no relation to the Debtors’ historical or present reality.”

    “The only plausible explanation for Credit Suisse’s actions is that it was simply driven by the fees it was extracting from the loans it was selling, and letting the chips fall where they may. Unfortunately for Credit Suisse, those chips fell in this Court with respect to the Yellowstone Club loan. The naked greed in this case combined with Credit Suisse’s complete disregard for the Debtors or any other person or entity who was subordinated to Credit Suisse’s first lien position, shocks the conscience of this Court. While Credit Suisse’s new loan product resulted in enormous fees to Credit Suisse in 2005, it resulted in financial ruin for several residential resort communities. Credit Suisse lined its pockets on the backs of the unsecured creditors. The only equitable remedy to compensate for Credit Suisse’s overreaching and predatory lending practices in this instance is to subordinate Credit Suisse’s first lien position to that of CrossHarbor’s superpriority debtor-in-possession financing and to subordinate such lien to that of the allowed claims of unsecured creditors.”

    Given this tone against credit suisse, i wonder how he will rule against TB. This is an interim order and the judge will still have to rule on all the other matters that were brought up at trial.

  2. blockhead says:

    Thats a good verdict, he wants the locals paid first, thats a good thing, the 310 is subordinated you crack head! I am happy aboutthis ruling! The tradesmen, contractors, employees get paid first, this is a great result. THe judge could have ruled they pay back the money. You idots think CS did this for 7m in fees, please! you are so ignorant. money is made on interest rates and rebundling. GREAT decission by the judge, Cs money comes second. Its like a farrt in the wind, you will smell it coming, just takes a moment to get to your thick dense brain! Johonny Macbonehead!

  3. pirroto says:

    I would agree that the judge’s decision seems more symbolic than material to CS. I’m not completely up on the numbers, but he put what, $8M?, ahead of $232M instead of behind it. A win for locals, granted (although hasn’t CH mentioned making them whole if they buy the place anyway?), but not really a big deal to CS. Their $232 lien is cut to $224. Sure beats having the entire lien canceled, which was also on the table. I guess you could call it a nuanced decision, but if I were CS I’d be pretty stoked.

  4. ohplease says:

    Actually, i think he ruled that it is not 310 Mil but 232 Mil.

    “Credit Suisse’s allowed secured claim of $232 million is equitably subordinated to: (1) CrossHarbor’s debtor-in-possession financing; (2) approved administrative fees and costs of the bankruptcy estate; and (3) the allowed claims of unsecured creditors. Credit Suisse’s $232 million secured claim is not subordinated with respect to the claims of members resulting from their membership agreements and is not subordinated to any claims of the Class B minority shareholder members.”

  5. Gate Crasher says:

    Bravo to the Creditors Committee! Justice prevails!

  6. John McCauley says:

    Blockhead…just wait until the judge finishes his rulings. Bet on this:

    TB – Pay it all back in cash or assets.
    CS- Return interest and fees back to Liq Trust.
    YC – CH owns the YC

    Happy Days oh Happy Days!

  7. billy says:

    we will see what happens on wed. blockhead u seem kinda mad
    sorry thing are not going ur way

  8. Dave D says:

    Of course you are happy Blockhead. Now you can start beating your gums about everybody gets paid just like when “Timmah” was around blah blah blah.

    Arf Arf lapdog

    Dave D the porn star

  9. bearbait says:

    We anxiously await a song from the fat lady. Until then, all will have to wait. Can you imagine how hard the Dewey, Dooley, Dickem and Howe lawyers are chewing on fingernails?

    It appears that testimony about lax bill paying to little guys, the trades, had an impact on the judge and his idea of legal justice.

    Someone out there knows, and I don’t, but in bankruptcy, which is in front of a Federal Referee or Judge, is there a hopeful appeals process? Will this thing get strung out for decades, or, because of the fragile nature of things financial, the certainty of further loss due to delay, you get but one bite of the apple?

  10. ohplease says:

    if you read the ruling, it isn’t just the 9-15 mil in trade that they have to come up with now in additional cash but the admin expenses, the committees expenses, the convenience class, rejected contracts, contractor liens, lemond and on and on…. cs is looking at $50 mil plus of added cash claims here to bid- it was well known that they could have cut a deal for nothing with everyone involved and kept their credit bidding rights and $310 million claim as late as last week- idiots. CS lawyers blew it- badly…

  11. Harpo says:

    So it looks like the early returns are in and the Judge has handed out a little “Montana Justice.” It is defintinely a good thing that the local trades and credtiors might get paid and I have zero sympathy for lenders who make such sloppy loans without reasonable due diligence. However, if his decision to label it a “pure greed play” motivated solely by fee generation and then subordinate it stands, look out! Hello, that is what lenders do. Make loans to generate fees. No matter how big a fee they were getting, it was unlikely they sat in the back room afterward and said, “boy that was a big crappy loan we just made, I give it 3 years.”

    Maybe this decision if it stands might motivate them to behave more responsibly in the future, but if their loans and lien priority can be subordinated like this it will impact how they loan in the future. Hopefully more carefully, but who knows, it could just add to the credit crunch. What about all the 95% LTV 2nd home loans that fueled purchases at resorts across the country the last 5+ years? Are they fraudulent also? Gets pretty complicated real quick.

    Does anyone know whether this is an appealable decision? I can’t believe even though it sounds good so far for the UCC, that this is even the begininng of the end. TB can’t be pleased. If CS was making a fraudelent loan, then TB was taking it. It will be interesting how this affects the CS loan and court proceedings in my neck of the woods at Tamarack. I had a chance to visit YC recently and I was impressed with all aspects of the development. They both have two things in common, CS and developers who even when presented with huge loan proceeds couldn’t control costs, keep their hands out of the till, delegate smartly and then eventually ran out of borrowed money to keep them afloat. This blog is great reading and highly fascinating. Good luck to those of you who are “invested” in YC.

  12. Yes we can't says:

    I’d like to take this opportune time to remind Blockhead of his claims that Tim Blixseth and Credit Suisse would join forces in a dream team bid. How embarassing.

    Tim fought and sand-bagged the entire process solely to keep Credit Suisse from turning their attention to him and his portion of his divorce of convenience spoils. I hope the Credit Suisse lawyers don’t make any mistakes in pursuing Tim to the fullest.

    Run rabbit run.

  13. Blockhead says:

    BYWC – Your initials say alot oabout you, especially the WC part.

    anyone, great humor but did I miss something? Is the auction over or is it today? Little trigger happy?

    How exactly does CS go after TB? You too are smokin the good stuff. Lets see, EB, owns the Promissory notes, she has Farcheville, she defrauded BGI of its main asset called PC with the help of SB and then owes a staggering 157m which includes PC debt to SB. Are you telling me TB should have gone out a defrauded backs like his ex-wfie? Thank goodness TB is nothing like his EX-wife who owes such an amount of money a depleted everything BGI owns. CS still could appeal, CS could still own this club today and CS will do what is right.

    As I said, the ruling is a good ruling for the locals of montana or as the judge put it, for the mom & pop owners, the trade creditors and employees. GL got shafted and so di the other B shareholders by this ruling but then again you could careless about them huh? Wrong attitude my dear BYWC!

    So, you think SB will pull it off? CS? TB? Other? Careful where you place your chips as beting on the wrong horse could see you packing. Slither snake slither! Good humor of course! Lets see what today brings shall we?

    JW, are you covering the auction? Let us know! By the way, what ever happened to the members group? Very sad in deed. GL should have bid.

  14. Dave D says:

    BH, glad to see that your resume is updated. I will be casting a new movie about a balding timber baron who rides into a small growing valley and proceeds to screw the locals all the while of setting up his ex wife to take the fall. Looking for a small time actor to play the part of a character named “scrumpter” Any ideas?

    Arf Arf little lap doggie

    Don’t hold your breath

  15. GC says:

    BH: How will you continue to spin the latest and upcoming news…Your crew cannot hide from their past and our Montucky judge will hold them accountable. Undoubtabley they will fight their demise with lawyers but the judge has cowboy boots on not italian loafers…Onward!!!

  16. blockhead says:

    auction is delayed! Yeah! judge did not read into this one. CS is not going to let SB take the club! nor is the unknown investor! YES YES YES. Its all coming apart at the seams for SB! Trust me when I say that GL got the shaft and CH/SB/EB had more planned for all.

  17. Blockhead says:

    Double D,

    I have a part for you but i can write it here. You cant handle the fact that you never amounted to much can you? Sad really, you look to place blame on those who had the guts to build something from scratch…he road in and everyone benefied, apart from you who sits around and blames everyone else. EDRA took the club as she believed in her own lies…sorry you do not see it. Call her, maybe she will begin to tell the truth. She cant even walk anywhere today given how many people she promised to repay the money to. Its not sad its shameful. Only thing now is for her to confess the truth and plead for forgiveness. THe church is just outside the gate of PC, wa there and pray.

  18. Jonathan Weber says:

    I took down Blockhead’s post with the WSJ article, as it is a copyright violation to cut and paste an entire article like that.

    The auction has not been delayed, or rather has been delayed by perhaps half a day as the parties wrangled over the exact implication of the Judge’s order for the auction. It will go forward either late this afternoon or perhaps tomorrow morning at the latest, assuming CS can get its noteholders to agree to pony up more cash. It’s now $7.7 million more cash upfront, plus a $14 million note for the benefit of unsecureds, on top of operating capital etc. before the credit bid can kick in.

    There is no reason to believe that there is a mystery bidder in the wings, any such bidder would have had to show themselves by now.

    As to LeMond, Blockhead’s comments are, as usual of late, way off the mark. From my experience avoidance actions on stuff like this are routine in bankruptcy, I doubt it came as a surprise to anyone. Blockhead is clearly representing the views of people who have a specific, material interest in trashing some parties and building up others so his comments should be read in that context.

  19. John McCauley says:

    Spot on Jonathan…you are correct on the delay. CS/SA scrambling to keep their world from unraveling!

    Blockhead…you running low on hot air yet?

  20. bearbait says:

    Blixeth is the spawn of the Greater Yellowstone Environmental Boo-Hoo land protectors. Remember, he bought the “Company” checkerboard lands in what was called the Taylor Burn, which if not put in USFS hands, would be the cause of Greater Yellowstone Area extinctions right now. Tomorrow. All the Gallatin NF budget and effort went into that land trade. No others were considered. It was a win-win. Ended logging in that area, and saved the ——(fill in your own charismatic critter) from certain extinction. The Gallatin crest is still blocked by checkerboard private lands. And will be for a long time. Trades with the USFS don’t happen because they want your land, and won’t give up any of theirs in the same area. NIMBY land trades. Except when Big Money shows up, and then like a miracle, things happen. Think Blixeth, Plum Creek, ect.

    So when you place blame in the TB deal, you have to first tip your hat to the GYA folks for being the facilitators. Enviroblindness. A kind of tunnel vision. If you think about the trade of timberland in checkerboard ownership, for what is now present in the Big Sky area for critters, it might dawn on you that it was not a zero sum game. The animals got hosed. And public access got hosed, too. Big Money prevailed. Thank you, Envirozealots!!!!

    Then, there is the lack of state and county development oversight that allows undisciplined development. Maybe a newspaper used as the personal pipeline of pipe dreams. The flim flam was palpable.

    THEN, and only then, do you come to the people who the judge says were driven by greed of the most egregious kind. What a target rich environment! Credit Suisse was romping in tall clover. Bundled big time debt was their’s for the taking. The whole of the landscape was in on the money conveyor. But when your development is built on financial sand, the biblical sand, there will be a time of reckoning. The old hooktender told me that when you are dealing with really smart guys, guys who know they are smart, all you have to do is wait and sooner or later they outsmart themselves, and then you arrive to get yours. Sound familiar?

    So, when this is over, one would hope that a more measured, thoughtful process will be put in place to continue the development. We must remember that there need to be toilets flushed and baths taken in Big Sky so the YC’s golf course has water. I don’t know how many toilets there is water for in Big Sky, but that is what will limit growth at the YC. Water will be the determining factor. You can’t dewater trout streams to have golf courses, swimming pools, and you can’t foul them with sewage from people or livestock. The area is a wonderful attractant to outside of Montana dollars, and if you look at what runs Montana, it is money brought from elsewhere, whether tourist dollars, or trust puppy investments and deposits. Montana has to do it right, because there is only one last, best place. When it ain’t, you got nuttin’, honey, but sparse grass, some backdrop beauty, and lots of country between with very little water, and lots of sky. This whole fiasco did not have to happen if there were people who did due diligence and vetted TB for his past, his track record. And if you found his past record acceptable, you will probably fall in that category the Federal Bankruptcy Judge has called “overreaching and self-serving”, and you would offend the conscience of most thinking people.

  21. Blockhead says:

    Well, WSJ article tells another story JW. Clearly they report what i was stating not the SPIN. No other bidder will show his face until the final hour. Definition of delay is what? If it goes to tomorrow what do you call that JW? ITs called a delay is it not or do you SPIN that as well? Sorry but lets get the facts on 1/2 day or a day is a delay.

    Blockhead is full on Hot Justice Warm Air! As I said I am pleased with the Judges ruling. I just cant wait until you all scamper when SB does the walk of shame for not getting the club. I will enjoy not only getting apologies from you but heavy duty gloating and then what? Well back to insuring hard working people get paid and free loading, complaining where is the bailout, rape the bank mentality people as DD JM seem to be. JW, are you in the court room standing by or going to pitch a sleeping bag since tomorrow is not a delay.

    Thos who want to see how GL got the shaft from SB/EB/CH, please go to this site:

    http://blogs.wsj.com/bankruptcy/2009/05/13/lemond-yellowstone-club-square-off/

  22. blockhead says:

    The ruling and minutes of the Judge just released

    MINUTE ENTRY FOR MAY 13, 2009, HEARING ON CASH COMPONENT OF CREDIT SUISSE’S CREDIT
    BID, IN LIGHT OF THIS COURT’S INTERIM & PARTIAL ORDER ENTERED IN ADV PRO 09-00014
    IN PERSON APPEARANCES – MARK CHEHI, EVAN LEVY, JAMES PATTEN, JONATHAN ALTER, TOM
    BECKETT, CLARK WHITMORE AND JOEL GUTHALS
    TELEPHONIC APPEARANCES – JON AMSDEN, FORD ELSAESSER, GERALD SIMS
    THE CASH COMPONENT OF ANY BID SUBMITTED BY CREDIT SUISSE SHALL INCLUDE, AT A
    MINIMUM, 43.7 MILLION; AN ADDITIONAL 14.3 MILLION FOR PAYMENT OF ALLOWED UNSECURED
    CLAIMS SHALL BE PLEDGED BY CREDIT SUISSE IN THE FORM OF A NOTE PAYABLE, SECURED BY
    THE YELLOWSTONE CLUB ASSETS. CREDIT SUISSE’S PREPETITION OBLIGATION IS
    SUBORDINATED TO THE 14.3 MILLION NOTE PAYABLE BUT THE 14.3 MILLION NOTE PAYABLE
    WILL NOT BE SUBORDINATED TO NEW MONEY; AND CREDIT SUISSE SHALL NOT BE ENTITLED TO
    ANY PAYMENT TOWARD ITS PREPETITION DEBT UNTIL ALLOWED UNSECURED CLAIMS ARE PAID
    IN FULL CONSISTENT WITH THE PRIOR ORDER OF THIS COURT

  23. Jonathan Weber says:

    On another note, I think Harpo raises some very good points above. Part of my interest in this case is what it says more broadly about financial practices gone bad and what can/ should be done about it. In answer to the specific question, bankruptcy decisions can indeed be appealed, generally they go first to Federal District Court and then to the Circuit Court of Appeals. CS has already appealed some things, including the original decision granting the CrossHarbor DIP loan. As a practical matter though an appeal won’t change the outcome since plan approval/ sale/whatever will have long since happened.

    If I were a homeowner or other interested party at Tamarack I would certainly be looking very hard at whether a similar claim could be brought against Credit Suisse. If it could, that might actually facilitate the re-opening of the resort.

  24. blockhead says:

    JW,

    You are really not reporting here are you to attack CS? I appreciate you get to blog but to now tell readers to go after CS is very bold in deed. Now I get why you love SB so much. Wow! JW i was diggin your paper until the attack CS. Did you forget that you begged for investors to get New West started. Listen, you were doin a great job up and until you now tell readers and tamarack to go sue CS. You alone better hope Cs does not walk away with this club and embarass you ?

  25. YC now MDR says:

    why do you guys spend all day fighting and bickering with each other, theres more at stake than your personal reputations in this and just to get the facts on whats going on would be a nice change..

  26. Dave D says:

    Yes “Timmah” had vision alright! That vision was to fleece as many people as possible and when his accountants and advisers told him of the house of cards he had built was ripe for collapse he shuffled that off on to his ex wife feeding on her desire and insecurities to be liked. Edra is no brainac or saint! I have my doubts that she could balance a checkbook let alone read a financial statement.
    As far a guts and vision to build something I have bootstrapped, invested in and sold more companies then you have blog entries my little lap dog! I have a life and a identity that I am comfortable with the question is do you my little lap dog friend.

    Arf Arf Blockhead

    Dave D

  27. Jonathan Weber says:

    My point of view on all this is not very complicated: it’s not good for Montana, or Idaho, or anywhere else to have closed & bankrupt resorts. I am in favor of solutions that put stable and well-capitalized ownership in place. Credit Suisse messed up big-time with their resort loan program, that is now an official judgement of the court whatever my opinion might be. If Credit Suisse has a plan that involves stable and well-capitalized ownership for the YC, great. But my reading of the situation is that they have no such plan, on the contrary they are merely trying to extract whatever dollars they can on behalf of a few institutional investors (several of which are speculators who bought the debt at a steep discount anyway). So, why would any close observer of the situation who is interested in what the outcome means for the community have any sympathy for Credit Suisse’s position in this?

  28. Jeff says:

    None of this is good for Montana…I suspected all involved are so caught up in self greed, ego, and material wealth that they will never have the many core values most Montanan’s have achieved through hard work, connection with the environment and each other. It’s a sad crystal ball forecasting the direction of this State…I hope I’m wrong.

  29. BLOCKHEAD says:

    JW

    By chance, what is your middle initial? curious

  30. Jonathan Weber says:

    My middle initial is S.

    I invite you or anyone else to do whatever research you might want to do about me or New West. All you’ll find is lots and lots of stories by me about lots and lots of topics, and a few nice stories about me. No scandals! Sorry!

  31. Harry says:

    Blockhead=Peters

  32. Blockhead says:

    JW,

    dID YOU DO A PIECE IN THE LAX TIMES BACK IN 1993 BY CHANNCE? IT gave an initial which is the one you just gave and was the reason i asked.

    BLOCKHEAD= AFPB FROM YCWBABY
    BLOCKHEAD = TB NOT EB AND CLEARLY NOT SB OR SOB
    BLOCKHEAD= DISGRUNTLED EMP
    BLOCKHEAD = FAIR REPORTING
    BLOCKHEAD = JW NOT BEING HONEST
    BLOCKHEAD = MEMBER SUPPORT OVER TB
    BLOCKHEAD =PRO CS
    BLOCKHEAD =PRO CHEHI
    BLOCKHEAD = PRO SUMP
    BLOCKHEAD = EMPLOYEES OVER CONTRACTORS
    BLOCKHEAD = SUPPORT FOR JUDGE
    BLOCKHEAD = FOX NEWS NOT NEW WEST FOR REAL NEWS
    BLOCKHEAD = SUPPORT FOR GL
    BLOCKHEAD = SUPPORT FOR CS
    BLOCKHEAD = JW NOT TELLING THE TRUTH
    BLOCKHEAD = SHARKBAIT UNCOVERED

    NOTICE OF VIDEOTAPED DEPOSITION OF SCHUYLER JOYNER
    PLEASE TAKE NOTICE that, pursuant to Rules 26, 30(b)(6) and 45 of the Federal Rules of Civil Procedure; 7026, 7030, 9014 of the Federal Rules of Bankruptcy Procedure; Local Rule 9014-1; and the Court’s Order of December 10, 2008, Authorizing Prepetition Lenders to Conduct Expedited Discovery (Dkt. 152), Credit Suisse, as agent (the
    08-61570-RBK Doc#: 868 Filed: 05/12/09 Entered: 05/12/09 19:37:09 Page 1 of 2

    “Agent”) to certain prepetition secured lenders in the above-captioned cases (the “Secured Lenders”), by its undersigned attorneys, hereby notifies Schuyler Joyner that he shall appear for deposition upon oral examination. The deposition shall be recorded by stenographic means and videotape and will take place before an officer authorized by law to administer oaths at Skadden, Arps, Slate, Meagher & Flom LLP, 300 South Grand Avenue, Suite 3400, Los Angeles, California 90081, on May 16, 2009 beginning at 9:00 a.m. local time.

  33. Blockhead says:

    At Butte in said District this 12th day of May, 2009.
    In this Adversary Proceeding, the Debtors filed a Motion to Strike Credit Suisse’s
    Improper Supplemental Post-Trial Brief and Unofficial Trial Transcripts on May 11, 2009, at
    Docket Entry No. 287. Credit Suisse filed a response to Debtors’ Motion on May 11, 2009,
    arguing that the “[t]ranscripts were provided to the Court simply in an effort to assist the Court in
    09-00014-RBK Doc#: 290 Filed: 05/12/09 Entered: 05/12/09 14:59:43 Page 1 of 2

    more quickly locating the relevant testimony on the audio recordings. Credit Suisse’s Post Trial
    Brief clearly indicates that it does not purport to designate the Transcripts as the official court
    transcript.”
    The Court agrees that Credit Suisse’s unofficial transcripts may serve as an aid to the
    Court, but they do not serve as the official court transcript. Thus, the Court finds that Debtors’
    Motion lacks good cause. Accordingly,
    IT IS ORDERED that Debtors’ Motion to Strike Credit Suisse’s Improper Supplemental
    Post-Trial Brief and Unofficial Trial Transcripts filed May 11, 2009, at Docket Entry No. 287, is
    DENIED.

  34. blockhead says:

    NOTICE OF PRELIMINARY TELEPHONE HEARING
    Palm Desert National Bank (“Palm Desert”), as a creditor of Edra Blixseth (“Debtor”)
    and a party in interest, has objected to the Motion to Modify Stay filed by Western Capital
    Partners, LLC (“WCP”) (Docket No. 107) and requested a hearing on the Motion. This
    constitutes notice of the preliminary telephone hearing is scheduled for Tuesday, May 19, 2009,
    at 2:30 PM.

  35. Blockhead says:

    COMES NOW, Ross Richardson, Trustee herein, and withdraws his Motion For Order
    Requiring Dieter Huckestein to Show Cause Why He Should Not Be Held in Contempt. Mr.
    Huckestein has provided to the Trustee schedules that were ordered to be provided by the Court.
    DATED this 13th day of May, 2009.
    U.S. BANKRUPTCY TRUSTEE

  36. blockhead says:

    CHARLES W. HINGLE, attorney for Credit Suisse, hereby designates the following witnesses to testify at the confirmation hearing scheduled for May 18, 2009:
    1. Ronald F. Greenspan
    08-61570-RBK Doc#: 879 Filed: 05/13/09 Entered: 05/13/09 15:15:31 Page 1 of 3

    2. Edra Blixseth
    3. Samuel T. Byrne
    4. Matthew Kidd
    5. Joseph Harris
    6. Schuyler Joyner
    7. Michael Meldman
    8. Brad Foster
    9. Gary Peters
    Dated: May 13, 2009
    /s/ Charles W. Hingle______________
    Charles W. Hingle
    Shane P. Coleman
    HOLLAND & HART LLP
    401 North 31st, Suite 1500
    P.O. Box 639
    Billings, MT 59103-0639
    (406) 252-2166 chingle@hollandhart.com (Email) spcoleman@hollandhart.com (Email)

  37. I can copy and paste too says:

    From Executive Golfer Magazine:

    “Who Owns YC and YCW?
    YC and YCW, are proprietary, owned exclusively by Tim and Edra Blixseth. There is no debt. There are no partners. No corporate shareholders. Last year, Forbes magazine’s list of America’s wealthiest 400 posted Tim Blixseth at No. 346 with a net worth of over $1 billion.”
    http://www.executivegolfermagazine.com/farcheville.htm

  38. Jonathan Weber says:

    Yes, I worked at the LA Times for 8 years, though I have never used my middle initial in my byline.

    You can all be the judge of my honesty. My point of view on this case is formed by the events, the realities of the situation, and the actions of the various parties. No hidden agendas here, regardless of what anyone might want to think.

  39. Dave D says:

    Blockhead is Petter Barve ?

  40. blockhead says:

    My theory is that “Sharkbait” is none other than Edra Blixseth, the ol’ ex-wife piping in from somewhere in Mexico. Edra, who would know how better than anyone, is getting Tim worked up into a paranoic frenzy. She won’t have to kill him, he’ll take care that himself. Any day now that “dreaded knock on the door” will send him flying out the window.

  41. Blockhead says:

    JW

    You are right, you have not slanted your story one bit from the start. Over all good reporting and favor CH Bid, de-test Big Banks, you stand for creditor not payinng back money they borrow, you stand up for the little guys (A good thing I like about you) you have blinders on to what SB will do with this club (not so good) but what troubles me is why you believe its good to go after CS. CS was no different then everyone in 2005-2009. All, yes all of us became greedy, face it people! Now we all want to say, not my fault right? no worng. Bailouts are not correct, blame game for this mess i not CS, its not TB, its others who continue to play the GREED game. IF CS is so horrible then tell me why did they raise CH first three funds? IF Cs is so bad, then why did they provide so many people loans, good returns over the years. Responsibility is the key JW not blame and bailout. CH is just diggin the hole deeper and you bought into the BS from SB. Call GL is you want a real story.

  42. Dave D says:

    You know something Blockhead you may be on to something there!

  43. Blockhead says:

    THe Sharkbait thing was added as it appeared in a Blog under cloak and dagger but with a strange blog name called MNW and signed by a friend of the West. How strange.

  44. GDM says:

    I thought WSJ were the ones reporting on the miracle divorce with that bottle of wine in 2006. They always seem to be pro TB. Time to get a new play book.

  45. blockhead says:

    Judith,

    So sorry to see you are called in for the exam but its so important for you to tell them about bank accounts, mony transfers and of course the meetings with Mr. Byrne at PC. also do not forget to tell them you rented the storage places to empty some of the furniture at Edra’s demand and also that flashy Bentley Edra gave to JS

    re
    EDRA D. BLIXSETH,
    Debtor.

    Case No.: 09-60452-RBK
    MOTION FOR RULE 2004
    EXAMINATION OF WITNESS JUDITH
    REDD AND ISSUANCE OF SUBPOENA
    DUCES TECUM
    __________________________________________
    Pursuant to F.R.B.P. 2004, and F.R.B.P. 9016 the undersigned respectfully requests
    the Court to order an examination and production of documents, with issuance of a subpoena
    duces tecum, as follows:
    1. Witness to be examined: Judith Redd
    2. Date: To be coordinated with witness and debtor’s counsel
    09-60452-RBK Doc#: 141 Filed: 05/13/09 Entered: 05/13/09 15:52:33 Page 1 of 6

    MOTION FOR RULE 2004 EXAMINATION – Page 2
    1
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    3. Time: To be coordinated with witness and debtor’s counsel
    4. Place: In or around Rancho Mirage, California
    5. Scope of examination: Witnesses’ business and/or employment relationship with
    the Debtor and/or Debtor’s entities.
    6. Documents to be produced:
    A. Any and all correspondence, including email correspondence between
    Witness and the Debtor since January 1, 2009.
    B. Any and all documents evidencing any money received by Witness from
    Debtor or Debtor’s entities.
    C. Any and all correspondence, including email correspondence between
    Witness and Jack Scalia since January 1, 2009.
    D. Any and all documents evidencing any and all money received by Witness
    from the sale or disposition of property owned by Debtor or Debtor’s entities,
    since January 1, 2008.
    E. Any and all documents evidencing any and all money transferred from
    Witness to Debtor or individuals associated with the Debtor, including,
    without limitation, Jack Scalia, since January 1, 2008.
    F. Any and all books and records, including financial institution statements,
    related to BLX Group, Inc. which are in your possession or control.
    7. Time, Date and Place of Production: Production of the documents requested
    above may be by mail and/or electronic delivery to the requesting party, with
    appropriate costs to be paid by requesting party.
    09-60452-RBK Doc#: 141 Filed: 05/13/09 Entered: 05/13/09 15:52:33 Page 2 of 6

    MOTION FOR RULE 2004 EXAMINATION – Page 3
    1
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    8. Moving Party’s Calculation of Mileage pursuant to F.R.B.P. 2004(e): N/A
    9. On the morning of May 12, 2009, Western Capital Partners LLC’s Colorado
    counsel contacted Debtor’s counsel to determine whether Debtor’s counsel will
    oppose a 2004 examination of Judith Redd. Debtor’s counsel stated he would check
    with the Debtor regarding the Debtor’s position on this Motion. As of the time of
    filing of this Motion, counsel for Western Capital Partners LLC has not heard a
    response from Debtor’s counsel as to its inquiry on this point.
    10. As the witness is located in the Rancho Mirage, California area, the undersigned
    will enforce an Order granting this Motion by certifying the Court’s Order granting
    this Motion in the United States Bankruptcy Court for the Central District of
    California and subsequently obtain the issuance of a subpoena from that court. See In
    re Texas Intern. Co., 97 B.R. 582, 584-87 (Bankr. C.D. Cal. 1989).
    Dated this 13th day of May, 2009.

  46. blockhead says:

    Jory,

    Wow, they figured out who had the secrets of all the money movements and the SB loan agreement and funds. good luck.

    In re
    EDRA D. BLIXSETH,
    Debtor.

    Case No.: 09-60452-RBK
    MOTION FOR RULE 2004
    EXAMINATION OF WITNESS JORY
    RUSSELL AND ISSUANCE OF
    SUBPOENA DUCES TECUM
    __________________________________________
    Pursuant to F.R.B.P. 2004, and F.R.B.P. 9016 the undersigned respectfully requests
    the Court to order an examination and production of documents as follows:
    1. Witness to be examined: Jory Russell
    2. Date: To be coordinated with witness and debtor’s counsel
    3. Time: To be coordinated with witness and debtor’s counsel
    09-60452-RBK Doc#: 142 Filed: 05/13/09 Entered: 05/13/09 16:02:39 Page 1 of 7

    MOTION FOR RULE 2004 EXAMINATION – Page 2

    4. Place: In or around Rancho Mirage, California
    5. Scope of examination: Witnesses’ business and/or employment relationship with
    the Debtor and/or Debtor’s entities and knowledge of the Witness relative to any and
    all loans to which the Debtor has been a borrower, signatory, or guarantor since
    January 1, 2006.
    6. Documents to be produced:
    A. Any and all correspondence, including email correspondence, between
    Witness and the Debtor since January 1, 2007.
    B. Any and all documents evidencing any money received by Witness from
    Debtor or Debtor’s entities since January 1, 2007.
    C. Any and all correspondence, including email correspondence, between
    Witness and Jack Scalia since January 1, 2009.
    D. Any and all documents evidencing any and all money received by Witness
    from the sale or disposition of property owned by Debtor or Debtor’s entities,
    since January 1, 2008.
    E. Any and all documents evidencing any and all money transferred from
    Witness to Debtor or individuals associated with the Debtor, including,
    without limitation, Jack Scalia, since January 1, 2008.
    F. Any and all books and records, including financial institution statements,
    related to any and all entities owned in whole or in part by the Debtor,
    including, without limitation, BLX Group, Inc. which are in the Witnesses’
    your possession or control.
    09-60452-RBK Doc#: 142 Filed: 05/13/09 Entered: 05/13/09 16:02:39 Page 2 of 7

    MOTION FOR RULE 2004 EXAMINATION – Page 3

    G. Any and all correspondence between the Witness and the Debtor regarding
    loans made by Western Capital Partners LLC for which the Debtor guaranteed
    repayment.
    H. Any and all financial institution statements within the Witnesses’
    possession or control for financial institution accounts over which the Debtor
    has signatory authority.
    I. Complete copies of computer hard drives and other electronic storage
    media which contain any and all accounting, email, and financial information
    of the Debtor and or entities owned in whole or in part by the Debtor.
    7. Time, Date and Place of Production: Production of the documents requested
    above may be by mail and/or electronic delivery to the requesting party, with
    appropriate costs to be paid by requesting party.
    8. Moving Party’s Calculation of Mileage pursuant to F.R.B.P. 2004(e): N/A
    9. On the morning of May 12, 2009, Western Capital Partners LLC’s Colorado
    counsel contacted Debtor’s counsel to determine whether Debtor’s counsel will
    oppose a 2004 examination of Jory Russell. Debtor’s counsel stated he would check
    with the Debtor regarding the Debtor’s position on this Motion. As of the time of
    filing of this Debtor’s counsel as to its inquiry on this point.
    10. As the witness is located in the Rancho Mirage, California area, the undersigned
    will enforce an Order granting this Motion by certifying the Court’s Order granting
    this Motion in the United States Bankruptcy Court for the Central District of
    09-60452-RBK Doc#: 142 Filed: 05/13/09 Entered: 05/13/09 16:02:39 Page 3 of 7

    MOTION FOR RULE 2004 EXAMINATION – Page 4
    1California and subsequently obtain the issuance of a subpoena from that court. See In
    re Texas Intern. Co., 97 B.R. 582, 584-87 (Bankr. C.D. Cal. 1989).
    Dated this 13th day of May, 2009.
    GOODRICH LAW FIRM P.C.
    By /s/ Malcolm Goodrich
    MALCOLM H. GOODRICH
    P. O. Box 1899
    Billings, MT 59103-1899
    Attorneys for Western Capital Partners
    LLC

  47. Jason Blevins says:

    Absolutely stellar reporting on this entire debacle by J Weber. Thorough and balanced. Well written and approachable. He should be proud and New West should be stoked to have him covering this circus.

  48. YC now MDR says:

    Maybe blockhead should be on the stand as he knows so much about the behind closed doors wheeling and dealing

  49. another observer says:

    Now is a good time to take a step back and appraise Blockhead’s role here. I had been calling Blockhead a lunatic, which I still think he is. But he’s obviously gotten under plenty of participants’ skin. Even the unflappable Mr. Weber. I can see why.

    It might just be a case of somebody playing the red herring. Throw facts out and manipulate them until sufficiently misleading the investigators. Like in the old mob days, ‘he’s singin’ like a boid.’ But does it add up to anything? Or divert attention, divide efforts and pit others against one another? Do we all need to go rent THE USUAL SUSPECTS? If you haven’t seen it, do yourself a favor and at least consider the possibility.

  50. Yes we can't says:

    Sorry but I had to show this old quote regarding Yellowstone Club World, to my understanding bought entirely with crippling debt:

    Didn’t bother to correct them did you Tim?

    “Who is Tim Blixseth?
    YCW is an undertaking of unprecedented magnitude. It’s the first and only multi-national group of privately owned resort destinations. However, even with membership fees starting at $3 million, your due diligence about Tim and Edra can be minimal. They have acquired all of their properties as sole proprietors. There is no debt. There are no partners. And, no corporate shareholders.”

  51. GC says:

    BH: you think JW is anti CS? Check the Bozeman Chronicle or read Judge Kirscher”s opinion….now lets throw in the vast majority of community members. Not many in favor around here. They were greedy fools with their lending and now will reap what t hey sowed. Anyway, I’m sick of you overcrowding the blog with your desperate optimism and biased facts. Find something better to do, go shine timmys chrome rims, anything but relentless blogging…Trying to smear JW. You are nothing but a desperate fool, thats all. You must have been one of tb’s sidekicks, it makes total sense…Tell me BH, do you think CS will eventually take some of TB’s assets with them back to Switzerland??Whats your inside, educated guess on that one? Timmy might be right behind your friend Edra…

  52. J_in_MT says:

    I find JW to be honest and straight forward.
    Blockhead is very amusing.
    Double D and Blockhead would love to see together some night at Milkies.

    EB can go get her Terot cards read and drop off the face of the earth. For that matter same with TB.

    Wish the members would just buy it and get SB/CH and the lot of them out of here. The members and Montana needs only honest decent people here.

  53. Concerned Local says:

    I hate to be chastized for sounding so uninformed, but can someone explain what is happening to me?

    I understand that CS will be the winner, as they put in a higher bid…is that correct? Is the auction over and we are awaiting the judges final declaration of that? Does anyone know the timeline?

    Please, can someone explain it in simple terms for us curious sideline watchers.

  54. billy says:

    blockhead it all comes together now u think FOX NEWS is fair.wake up ,and to say we all got greedy in the past few years now i know you are one of the peaple that got us were we are now “banker ?” most of us around here live for this place not money we did not get houses we can’t afford or steal from are friends your just like all the rest TB ,EB,ect. go back from what ever hole u came from leave MT.a@&hole;

  55. impoverishedyokel says:

    Sooooooo, I take it CS gets the place, takes care of the required payoffs to creditors, then shuts it all down to sell it off (someday) piece by piece. All the hard working dedicated employees get a much needed (unpaid) vacation and loose their homes etc.
    Or what am I missing?

  56. No Name says:

    As I understand it is whomever owns it must first pay off employees and vendors? Is that the ruling? At least that is the most recent event I understand.

    JW good job, but blockhead throws so much of his/her “inner crapola” into the mix and makes for confusion. I guess that is what blogs are for…to sit on the computer and ramble. There has to be some truth in what BH says, but too much emotion to make it believable.

  57. No Name says:

    Isn’t “predatory lending” used when a creditor takes advantage of somebody who doesn’t know what they are getting into? Seems TB isn’t a “victim”, but the members and employees are. How does that translate?

  58. blockhead says:

    Hello bloggers AKA hate the blockhead fans:

    News Flash:

    Sam Byrne is again trying to block (pardon the Pun) Cs from bidding. Once again, CH/SB were hoping to only use the DIP Money and provide 70m in credit notes and of course throw GL to the wolves! So why is that important? Simple: SB/CH have no more money to plug into this shipwreck they created in the BK. Yes, SB/CH state they will provide more money for running the club but that just means trying to sell property, something SB/CH proved they do not knnow how to do at YC. How many condo sales in 3 years? Hmm. Low ball figure. Has ANYONE stopped and asked SB/CH for their former financial forecasts and how much he borrowed against that Sunrise Ridge and 4 houses? You do realize he must make payments on this as well correct? They are not selling either so why the hell in no one looking at this? JW, you have access to Montana Property Records, how much is the mortgage on Sunrise Ridge. Are you afraid to report that number which is over 100m for sake of looking silly or can you please look this up for us as if it comes from me you know what my fans will say which will be less than attractive.

    I am so gld I prompt you all to at least sit back and think, something a lot of the BRAIN-WASHED bloggers fail to do.

    By the way JW, can we actually use the word DELAY now? Clealry its been over 24 hours and no auction! In the airline business we call this Really Fuxxing delayed but hey, who am I to use the wrong words right. My spelling sucks as everyone pointed out but its called a delay.

    so, why is SB blocking CS? Clearly CS wants to pay more for the club then SB/CH and thats a good thing last time I checked but none of you seem to care about that do you. More money for the club insures more money for the UCC, that is unless the UCC is really SB as clearly SB controlled the heck out of EB who looks to be living in very small quarters soon. Martha Stewart can give her some great tips on how to knit shirts and kill some time! Still not to late EB to tell the truth! At least then you get your friends respect back. After all you threw GL under the bus allong with those friends you borowed money from. By the way EB, just what the hek di you spend the Western Capital money on? Your chef, pilot, clothing, jet fuel? Sure is hell did not go to the Mobile home owners who are left out in the cold. WHERE did you spend 157m EB? We all want to know including the Tax authorities, friends, banks, family. You by far did play a role in building YC, it was actually you who decieved everyone huh! Unbelievable stroy Edra how you conned everyone out of 157m and they all believed you. SB should hire you to capital raise for his next fund! Maybe he is?

  59. blockhead says:

    NEWs FLASH: NEW Court Order just issued: JW will verify as its in the Public Records:

    Judge ordered Jack Scalia to be examined, Called a 2004 Exam and be questioned by Western Capital as to where part of the 157m went. Why is this important, well the UCC also includes YCW members who EDRA owes over 13m to as well as members need her to pay back the 209m in Promissory notes. AS you may not know, EB bought her boyfriend a shinny new Bentley convertible. Great call but should be as she paid cash for it, over $300,000 of a gift! What a generous girlfriend! Only problem was that money was for Story Mills in Bozeman who many people, including contractors were never paid! close sources reveal Jack sold the car for cash! ouch? EB, a little explaining to do huh?

    The judge also issued ORDERS to have Jory Russel be examined since he was the one moving all EB money and dealing with all the fraudulent financial statements which he prepared for her to convince banks to lend money to her! Jory, cut a deal with the FBI as soon as possible as your name is all over the bank accounts and records. You even had a bank account in your name someone stated at BLXWARE for EB. Seriously come clean quick and reveal all in your exam. You know she took money from people by not being honest. Save your own butt.

    Judge also issued orders for Judith Redd. So my advise there is Judith, explain what edra did with the furniture in the storage boxes, her missing jewlery and of course the expensivve paintings which went walking three weeks ago out the gates of PC. Again, cut a deal with the Feds as the IRS 2004 Exam is not going to be fun!

    So my fellow bloogers, again why do I report this? Well EB said SB did not take advantage of her, or so she said under oath! Clearly this lady will throw anyone under the bus and say and do anything to protect her. Just ask GL! Look at it this way, her employees are being hauled into questioning as they were doing her nasty work for her of lying and creating false financial statements but this is how EB treats people. More later as the public records of the courts are full of filings. JW, please confirm as these were filed 2 hours ago as you can see.

  60. blockhead says:

    I approve of the last message! I am Blockhead and I am running for Presdient.

    MEMBERS, listen to the man above! Put your money in and do the deal, better yet, do it with CS and wake uo! YR, GD, BS, BG time to step up to the plate or fade away!

    New blogs on JW lack of information update. Can people please ask JW to tell us REALLY how much debt SB/CH have on sunrise ridge, the golf lots and the 4 unsold houses? JW, come on it take 15 minutes of your time to get the mortgage docs on those pieces of land! Sure would be nice to see you do some fair reporting! SB is oer his head and using his investors money like its his! In school we called this investor misrepresentation! SB says his investors and banks are ready to rock and roll….who are his banks and who are his investors foolish enought to follow him in to the dark side? JW, please go to the county records and tell us the amount of borrowings! IT goes to the very nature ofthe argument in court! Who has the money and who does not! You are going to be shocked when you see how much Sam Byrne’s group called Cross Harbor has borrowed against those properties and it may make you question one simple thing, who BSed who in court! Do your homework people! SB needs this club so much or he risks loosing his investors for good! SB, want to do another interview with JW? THree questions I have for you and I cant even get Montana’s favorite blog site to even pick up a phone and get such simple information for its readers on your borrowings. THey are reckless borrowings against sunrise ridge, golf lots and the 4 houses but know one is looking at this! WAKE UP MONTANA, you are getting shafted just like GL. If you prove me wrong then I will go away but I know you can not. Someone prove me wrong! SB owes a lot of money to the banks on his YC investments and nothing is selling! PROVE ME WRONG before its too late! Let CS get the club, at least they have more money then SB and everyone gets paid thanks to the judge! Think about it. EDRA did not listen to me and now she faces IRS questioning, banks calling in her phony financial statements and illegal use of loan proceeds!

  61. billy says:

    this is not a blog about obama it is about the YC so stay on track
    by the way the club was in the dump before obama

  62. blockhead says:

    Extrack from YCW filing today! very interesting!

    Just as one example, on the eve of the filing of the Yellowstone Mountain Club bankruptcy, Edra Blixseth ordered over a million dollars of YCW funds to be transferred to herself and Yellowstone Mountain Club. These transfers were made at a time when YCW had no income, no apparent tangible assets, and millions of dollars in legitimate debts to persons other than the Blixseth family. These transfers were fraudulent. The Court’s order would, in effect, bless these fraudulent transfer and preclude any real hope of recovery even though the Chapter 7 Trustee has a nearly indisputable right to return of those funds. At a minimum, the Chapter 7 Trustee should have an opportunity to prove up the amount of character of his claim.

  63. J_in_MT says:

    My comments where not about Obama. A simple fact of noting what people are thinking and how it effects consumer confidence. One only puts out $$$ when they are comfortable. What is causing bad press needs to stop so we can start building confidence.

    I bet billy has never sold a high end product and isn’t talking to people to buy. Otherwise he would know how scared people are.

  64. hello kitty says:

    I think Billy should get back in his subaru with the Clinton/Gore sticker and head off to his part time job taking census for the obama Adminastartion.

  65. Nancy says:

    Don’t speak for everyone former. DLC is a disaster but they are better than the previous mismanagement. You must not know many who work at yc. Let’s hope if cs gets the club that they leave tb out of the loop. God forbid the club end up right back where it was. Anything new is better as far as management. I’d still like to see a third party for the sake of everyone involved there. Blockhead is bound to be right with one of his upteen guesses as to who takes control.

  66. WeeJohnnyMC says:

    Nancy…maybe they can have you manage the property. You seem to be so proficient at saying how bad the management was and is now, maybe they should have you replace Hans and Charlie. You could trade in your order pad and apron.

  67. Nancy says:

    Calm down little Johnny. Who said anything about HW and CC? Look at the number of full time employees that came and went under the other vp’s watches. The only new hires were people from out of state because everybody in the county worked there at one time or another. CC knows how to manage and is a saint. After you get the list of disgruntled employees, look who was mismanaging them. It wasn’t CC or HK. HW hasn’t been there long enough to say anything bad about. He deserves an award for tolerating the place for as long as he has and yes, things are better from what I understand WHICH PROVES MY POINT! You need to cool your little jets wee johnnie. Pay attention before you shoot your mouth off.

  68. another observer says:

    Goodness me, this reads like a middle school chat room debating the merits of the Jonas Brothers. I’m continually amazed by the rudeness of people hiding behind their screen names. There’s debate, and then there’s taking underhanded digs at others for posting their comments. It’s pretty easy to imagine who was the bully at recess. ‘head off to his part time job taking census for the obama Adminastartion’ (sic). Boy, you really showed him. Soo pedestrian.

    Well, lest anybody forget, the world is watching. This kind of bickering casts a stink on a place touted as laid-back, family friendly, and not elitist. These posts are quite to the contrary. Imagine how this portrays your club to prospective members. I’d imagine anybody looking for a place to make home in the rockies would view this kind of infighting and head to sun valley to get away from the self-importance.

    It’s all fun and games for me. I don’t really care if this club makes it or not. I tend to agree with the Former YCer. I don’t think the future looks good for the yellowstone club under any ownership. Besides, take away the glitz and exclusivity and you have nothing. Why wouldn’t a prospective buyer just look at the two other ski resorts in town with WAY more skiing?

    But to some of you who have a stake in the place, this just shows how two-faced you can be. There’s the genteel face displayed in person, and the resentful, rude mudslinging that shows itself as soon as identities are hidden. Have fun duking it out.

  69. Former YCer says:

    another observer: great summary! A return to civil debate is much welcomed.

    It will be a long time, if ever, that YC returns to even a reasonable state. I know many (some of them good) people who poured their heart and soul into YC, only to get screwed (whether directly or indirectly because of this mess). Its a shame and I feel sorry for all of the locals and employees and members who have taken a hit on this. Hopefully the court will continue to side with the good folks and let the big shots wallow in their own filthy mess. The future of YC looks bleak however, no matter who ends up owning it through this process. The club exists on real estate sales, and who the heck would bother joining (and buying real estate) when the history is rife with greed, deceit and treachery? There are many other great places to own when you have that kind and money, and nobody is interested in buying a headache. Those of you who are waiting for a white knight to come riding in…please move on. Hanging in there waiting will only provide more heartache. Like a bad relationship, when its over its over, and you need to just cut your losses and move onto more positive things. By the time anything positive happens with YC, all of us will have long since been retired and lounging on a beach somewhere (I hope!)

  70. spiritsurfer says:

    After reading this blog and all the commentary all I can say is you all deserve each other. I can see why nothing is selling at YC. I am happy that vendors both big and small are getting paid but the Judge’s position on CS does not make any sense. Why would CS lend $380M to make a comparably small $7M in fees if they thought they were going to loose the $380M? The loan was meant to be part of an expansion of the YWC, to create greater value to YC to increase sales! If that’s predatory lending I’m with Dave D ARF! ARF! The due diligence was lengthy and extensive on the loan and in part conducted by several independent parties, not to mention presided over by armies of lawyers and accountants. This “Western Justice” judge’s ruling implies that a bank (banks make money by loaning money) loaned the money intending to BK the club. That’s preposterous! Just the opposite is true. EB’s unmitigated greed and self-serving avarice drove her to demand the club from TB in the divorce. CH deep sixxed the club with EB when they realized that they could steal it from BGI if they could get it away from TB instead of paying the $450M they were about to offer for it before EB got the club in the divorce. CH/SB are completely upside down in the club. It will be revealed in court’s that allow proper due diligence that EB has been involved in many more suspicious activities than just this fiasco. The truth will surface with time. It always does. I hope that the people of Montana can move forward and welcome prosperity back to YC and the surrounding community.