Yellowstone Club, Ski and Golf Club, Files Bankruptcy (Update1)
By Dawn McCarty
Nov. 11 (Bloomberg) -- Yellowstone Club, a private ski and golf resort in Montana, sought bankruptcy protection from creditors, citing a decline in the real estate market.
Yellowstone Development, based in Rancho Mirage, California, listed assets of $500 million to $1 billion and debt of less than $500 million in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Butte, Montana.
Yellowstone Club consists of Yellowstone Mountain Club, the previous owner of the land, and Yellowstone Development and Big Sky, which bought the property to develop ski trails, a golf course, lodges and residences, according to court papers. The companies are collectively known as ``Yellowstone Club.''
The company was unable to pay its creditors due to ``decreasing revenues brought on by, among other things, economic factors causing both difficulties in obtaining credit and declines in the real estate market,'' according to court papers.
The 13,600 acre property, located 20 miles (32.2 kilometers) from Yellowstone National Park in Big Sky, Montana, had an appraised value of $778 million on June 28, excluding unsold memberships for the use of the resort's facilities, which are worth $336 million, according to court papers.
Yellowstone Club owes about $323 million under a $307 million credit agreement with Credit Suisse Group AG as agent for lenders. Yellowstone Club plans to borrow as much as $4.45 million arranged by Credit Suisse to help fund operations as it restructures, according to court papers.
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: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net.
Last Updated: November 11, 2008 10:25 EST
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