Large Sky, Montana – The Yellowstone Membership, a non-public ski and golf resort in Large Sky, Montana, was as soon as the epitome of ultra-rich exclusivity. It boasted members like Invoice Gates and Justin Timberlake. Its spectacular collapse into chapter 11 in 2008 is a story of greed, mismanagement, and financial fallout. Right here’s a breakdown of the way it occurred, the fallout, intriguing info, and the membership’s present standing.
How the Yellowstone Membership Went Bankrupt
Based in 1997 by timber baron Tim Blixseth, the Yellowstone Membership was a 13,600-acre playground for the ultra-wealthy. It provided personal ski slopes, a Tom Weiskopf-designed golf course, and houses just like the $155 million Pinnacle mansion. Membership required a $250,000 initiation payment, $16,000 annual dues, and a minimal $3 million web value. Regardless of its elite attraction, the membership’s monetary basis was shaky.
The deadly blow got here in 2005 when Tim and Edra Blixseth secured a $375 million mortgage from Credit score Suisse. They used the membership’s belongings as collateral, regardless of assurances to members that the membership would stay debt-free. Courtroom paperwork later revealed that $209 million of this mortgage was diverted to the Blixseths’ private accounts. It funded lavish purchases like a $28 million French chateau, a $40 million Mexican resort, a $28 million Caribbean island, and a $40 million Scottish golf retreat for a failed enterprise known as Yellowstone Membership World. This left the membership with a crushing $343 million debt load.
By 2007, money stream points emerged resulting from heavy debt servicing, profligate spending, and erratic administration. The Blixseths’ divorce added gas to the hearth, with Edra gaining management of the membership—and its money owed—whereas Tim walked away. A proposed $455 million sale to CrossHarbor Capital Companions fell by way of in 2008 amid the worldwide monetary disaster. The disaster tightened credit score markets and decimated the posh actual property market. With solely $40,000 left in its accounts, the Yellowstone Membership filed for Chapter 11 chapter in November 2008.
The Fallout
The chapter was a spectacle of authorized battles and monetary reckoning:
Collectors and Lawsuits: The membership owed $343 million, together with $307 million to Credit score Suisse. Members like bicycle owner Greg LeMond sued the Blixseths, alleging they have been cheated out of their investments. LeMond settled for $39.5 million, although Edra solely paid $8 million earlier than her personal chapter.Tim Blixseth’s Legal responsibility: A federal decide dominated in 2010 that Tim’s “self-dealing” and “deception” brought about the chapter, ordering him to repay $286.4 million to collectors. He was later jailed for 15 months for contempt after hiding belongings, together with a yacht and personal jet, to keep away from funds. He settled with the Yellowstone Membership Liquidating Belief for $3 million in 2016.Credit score Suisse’s Function: Chapter Decide Ralph Kirscher criticized Credit score Suisse for “predatory lending,” stripping them of their first-lien standing. The financial institution settled for an $80 million notice, a fraction of their $310 million declare.Financial Impression: The chapter threatened 550 jobs and native suppliers. A $20 million interim mortgage from CrossHarbor stored the membership operational throughout the 2008-2009 ski season.Asset Gross sales: Edra’s 30,000-square-foot Porcupine Creek property was bought to Larry Ellison for $42.9 million in 2011. Different worldwide properties have been liquidated to cowl money owed.
Fascinating Info
A-Record Members: The membership attracted high-profile names like Invoice Gates, Dan Quayle, and later, Justin Timberlake, Ben Affleck, and Mark Zuckerberg (rumored). Its exclusivity was constructed on “Personal Powder” and runs named “Learjet Glades” and “Ebitda.”World’s Most Costly Dwelling: The Pinnacle, a 53,000-square-foot mansion with a 30-car storage and eight,000-bottle wine cellar, was marketed for $155 million however by no means bought because of the chapter.Blixseth’s Spending Spree: Tim’s purchases for Yellowstone Membership World included a $44 million Gulfstream jet and a $400,000 Rolls-Royce, epitomizing the surplus that led to the collapse.Decide Kirscher’s Stand: The Montana decide’s daring rulings earned reward for delivering “tough justice.” These embody prioritizing unsecured collectors (distributors, staff) over Credit score Suisse, which have been uncommon in chapter courtroom.Cultural Critique: The chapter highlighted the excesses of the pre-2008 credit score increase. Critics argued the membership’s mannequin—catering solely to the ultra-rich—was unsustainable. It lacked the social vibrancy of public resorts.
Present Standing
The Yellowstone Membership emerged from chapter in July 2009 beneath new possession by CrossHarbor Capital Companions, led by member Sam Byrne. He bought it for $115 million—a steal in comparison with the $400 million valuation a yr earlier. Since then, the membership has rebounded:
Monetary Restoration: By 2014, the membership had no remaining chapter debt, constructive money stream, and doubled its membership to over 500 households.Growth and Partnerships: In 2013, CrossHarbor partnered with Boyne Resorts to amass the bankrupt Spanish Peaks and Moonlight Basin resorts. They consolidated these resorts with Large Sky Resort to create a large ski terrain community.Continued Exclusivity: As we speak, the membership spans 15,200 acres, providing 2,900 acres of skiable terrain, an 18-hole golf course, and luxurious actual property. Membership now reportedly requires a $400,000 initiation payment and property possession inside the membership.Superstar Attraction: Current experiences recommend stars like Taylor Swift and Travis Kelce spent July 4th, 2025, on the property. This reinforces the membership’s standing as a celeb hideaway.
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