By Steven Church
Dec. 4 (Bloomberg) -- Credit Suisse Group attorneys plan to question the owner and members of bankrupt Yellowstone Club in an attempt to control future financing for the gated ski retreat for millionaires.
Credit Suisse filed papers in U.S. Bankruptcy Court in Butte, Montana, yesterday requiring Edra Blixseth, who controls the resort, to appear for a videotaped deposition. The bank also said it plans to question representatives of a committee of members and CrossHarbor Capital Partners LLC, a Boston-based private-equity firm that backed out of a deal to buy Yellowstone earlier this year.
Last month, CrossHarbor won a court dispute with Credit Suisse over the right to provide a temporary operating loan for Yellowstone. Judge Ralph Kirscher ruled that Credit Suisse’s loan proposal was “unworkable” and would lead to the club’s “imminent failure.”
On Dec. 11, Kirscher will decide whether to give final approval to the $19.8 million, temporary operating loan provided by CrossHarbor. To prepare for that hearing, Credit Suisse lawyers said they planned to question Blixseth, CrossHarbor and the members’ committee about the loan and any other financial ties the groups may have to each other.
Credit Suisse also filed court papers requiring a representative of Discovery Land Co. to answer similar questions.
A message left with Yellowstone’s public relations firm in Chicago wasn’t immediately returned. Credit Suisse attorney Mark Chehi didn’t return a call for comment.
Logging Land
The Yellowstone Club is located 20 miles (32.2 kilometers) north of Yellowstone National Park. Blixseth co-founded the club on 13,600 acres (5,500 hectares) of old logging land with her husband Tim Blixseth in 2000. She won control earlier this year after a litigious divorce.
Blixseth put the club into bankruptcy last month, blaming the real estate slump for a liquidity crisis.
Members of the club include Microsoft Corp. founder Bill Gates, former Vice President Dan Quayle, and Robert Greenhill, founder of investment bank Greenhill & Co. They put down a $250,000 deposit to join the club, and pay $18,000 a year in dues to help keep the lifts running and the grass mowed on the 18-hole golf course.
The case is In re Yellowstone Mountain Club LLC, 08-61570, U.S. Bankruptcy Court, District of Montana (Butte).
To contact the reporter on this story: Steven Church in U.S. Bankruptcy Court in Wilmington, Delaware, at schurch3@bloomberg.net.
Last Updated: December 4, 2008 18:49 EST
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