Monday, March 30, 2009

Edra Blixseth Files Personal Bankruptcy

The tentacles of the Yellowstone Club debacle are spreading. Edra, the former wife of Tim Blixseth who smartly managed to transfer ownership of the bankrupt and lawsuit-festering resort to her as part of their separation, filed for personal bankruptcy late on Friday. The reason for filing was to prevent some of her property from being seized by creditors.
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.
Last month, Edra had an arrest order issued after she failed to appear in court for a "debtor exam", related to $13 million in debt she was ordered to pay to Western Capital Partners. Edra is no stranger to bankruptcy, having filed another one previously with her ex-husband in 1986.
Furthermore, Edra is generally very confused by the desire of creditors to go after her, and wants to clarify that all the allegations about massive money laundering and fraudulent conveyance are completely unfounded and that neither her nor her former husband benefited directly to the tune of hundreds of millions of dollars by channelling money from Yellowstone into their pockets.
“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.
This statement is curious, considering that cyclist Greg LeMond, an early investor in the club, claimed in a prior lawsuit that the Blixseths took $209 million of the Credit Suisse loan backing the Yellowstone Club (and at the heart of the current legal proceedings) and used the proceeds to buy boats, cars and a 16-bedroom chateau in France for $28 million. Despite a settlement in the LeMond suit for $39.5 million, Edra still owes $13.5 million to Greg since November 15.

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