March 27 (Bloomberg) -- Edra Blixseth, who controls the Yellowstone Club, a bankrupt ski resort for millionaires, filed her own bankruptcy case in an effort to prevent some of her property from being seized by creditors.

Blixseth said her total debt was between $500 million and $1 billion and her assets were worth from $100 million to $500 million, according to a Chapter 11 petition filed yesterday in U.S. Bankruptcy Court in Butte, Montana,

Blixseth “was forced to file an emergency Chapter 11 petition on this date to stop a creditor from seizing and liquidating property,” her attorney, Gary S. Deschenes, said in court papers.

The Yellowstone Club, a 13,600-acre (5,500-hectare) enclave north of Yellowstone National Park, sought protection under Chapter 11 of the U.S. Bankruptcy Code on Nov. 10. Members include Microsoft Corp. co-founder Bill Gates and hotelier Barry Sternlicht, along with dozens of financiers and hedge-fund managers.

Last month, a federal magistrate judge in Colorado ordered Blixseth arrested after she failed to appear in court for a so- called debtor exam, according to court documents. That hearing was related to a $13.3 million debt Blixseth was ordered to pay in January to Western Capital Partners LLC.

Bill Keegan, a Blixseth spokesman, said today her lawyers were working to resolve the arrest order. Keegan blamed Blixseth’s troubles on her former husband, Tim Blixseth, claiming he’s encouraging false allegations against her.

‘Orchestrated Campaign’

“There has been an orchestrated campaign to discredit my good name, my business interests, and the years of hard work I have invested in both the club other businesses and my many philanthropic endeavors,” Edra Blixseth said in a statement.

Tim Blixseth denied the allegations. Edra Blixseth gained control of the Yellowstone Club last year as part of the couple’s divorce settlement. They previously filed for bankruptcy in 1986.

“That is a manufactured alibi for her business failures,” Tim Blixseth said today in an e-mailed response to questions. “She owes me $19 million and why would I encourage anyone to sue her ahead of me trying to collect what is owed to me?”

The Blixseths founded the Yellowstone Club, a gated community where Persian rugs line the ski lodge, in 2000. Wealthy people flocked to the resort, paying $205 million for 72 properties in 2005 alone. A lot with a small cabin on the property once sold for $18 million, Tim Blixseth said.

Credit Suisse Loan

The Blixseths’ financial troubles started in 2005, when they took a $375 million loan arranged by Credit Suisse Group AG to repay old debt and “fund a return of capital to the company’s owners,” according to a document describing the loan.

Champion cyclist Greg LeMond, an early investor in the club, said the Blixseths took $209 million of the Credit Suisse loan as their return and that other investors should have gotten a return, too. He sued in Montana state court in nearby Virginia City in May 2006.

The Blixseths used the money to buy boats, cars and a 16-bedroom chateau in France for $28 million, LeMond alleged. The parties settled the suit last year for $39.5 million, though Edra Blixseth missed a Nov. 15 deadline to pay the $13.5 million balance owed, according to a court filing by LeMond.

Property in France

Blixseth was trying to sell property in France and Scotland to pay down her debt when the real-estate market crashed and credit markets seized up, Keegan said.

She intends to sell the Yellowstone Club through a court- sanctioned auction, with CrossHarbor Capital Partners LLC as lead bidder. CrossHarbor, founded by club member Sam Byrne, loaned Blixseth $35 million secured by her estate near Palm Springs, California.

Yellowstone’s lenders, led by agent Credit Suisse, have opposed the sale, claiming that the loan means Blixseth is “effectively dominated,” by CrossHarbor. Credit Suisse has asked the judge in the case to appoint an examiner to oversee the proposed auction to ensure that the outcome is fair.

The case is In re Edra Blixseth, 09-60452, U.S. Bankruptcy Court, District of Montana (Butte). The Yellowstone case is In re Yellowstone Mountain Club LLC, 08-61570, U.S. Bankruptcy Court, District of Montana (Butte).

To contact the reporters on this story: Steven Church in Wilmington, Delaware, at schurch3@bloomberg.net; Anthony Effinger in Portland, Oregon, at aeffinger@bloomberg.net.

Last Updated: March 27, 2009 19:26 EDT