$3 Million Settlement To End Blixseth Saga
Creditors of a Montana luxury resort have accepted a $3 million settlement offer to end a long-running case against its former owner, Tim Blixseth, who was suspected of pocketing hundreds of millions of dollars in assets.
Despite obtaining $525 million in judgments against Blixseth, creditors for the Yellowstone Club were able to find only a single bank account containing $141, an article in The Oregonian noted. Creditors decided the $3 million settlement would “provide substantially more value than might be expected from continued litigation with Blixseth," according to court documents filed last week.
Blixseth ran the luxury resort with his wife. An AP article said, “Its private ski hill and golf course in the mountains near Yellowstone National Park attracted a celebrity-studded membership that reportedly included former Vice President Dan Quayle, Microsoft co-founder Bill Gates and entertainer Justin Timberlake.”
Following his divorce, Blixseth allegedly diverted most of a 2005 Credit Suisse loan to the club for his personal use, financing a jet-setting lifestyle. The club went bankrupt after it was transferred to his wife as part of the divorce settlement.
Bailey Glasser Brian Glasser is serving as trustee for the club’s creditors. Kevin Barrett represents the Yellowstone Club Liquidating Trust.
Oregon real estate developer Marty Kehoe will pay the settlement on Blixseth’s behalf.