BILLINGS, Montana — An appellate court has upheld a lower court ruling that approved the bankruptcy reorganization of an entity once controlled by Yellowstone Club founder Tim Blixseth.
A three-judge panel of the 9th U.S. Circuit Court of Appeals said in its Aug. 26 ruling that Blixseth lacked legal standing to appeal the reorganization plan for BLX Group, Inc.
The decision upholds a 2013 ruling from U.S. District Judge Sam Haddon.
Creditors from the Yellowstone Club's 2008 bankruptcy are seeking more than $200 million from Blixseth. Courts have ruled that the proceeds of a 2005 Credit Suisse loan to the club were fraudulently transferred to Blixeth and his ex-wife, Edra, for their personal use.
The loan was transferred through Tim Blixseth's Blixseth Group, Inc., which became BLX Group, Inc. after Edra Blixseth gained control of the entity during the couple's divorce.
Edra Blixseth later went bankrupt, leaving the club's creditors to pursue Tim Blixseth.
The Yellowstone Club, a private ski and golf resort near Big Sky, is now under new ownership.