Yellowstone Club gets court OK of bid procedures for proposed $100 million asset sale

By Jennifer Lanning Drey

Portland, Ore., March 9 - Yellowstone Mountain Club, LLC received court approval of plan solicitation procedures that include CrossHarbor as stalking horse bidder in the proposed sale of Yellowstone's equity interests, according to a CrossHarbor news release.

CrossHarbor's bid provides for a purchase price of about $100 million, as well as the assumption of liabilities, including some or all of the club's obligations to existing members.

Additionally, CrossHarbor has agreed to provide additional capital of at least $75 million to the reorganized club, as well as to commit up to $7.5 million of CrossHarbor's funds for payment of the claims of local trade and other creditors to preserve the reputation and good standing of the club.

The offer is subject to higher and better offers.

Under the approved bidding procedures related to the proposed sale, bidders will be able to submit bids on or before 10 days prior to Yellowstone's plan of reorganization confirmation hearing.

If multiple bids are received, an auction will be held five days prior to the confirmation hearing.

The confirmation hearing is expected to be scheduled between April 30 and May 21, according to the release.

The club is continuing to operate with debtor-in-possession financing provided by a CrossHarbor affiliate, CrossHarbor said.

Yellowstone Club's official committee of unsecured creditors and an ad hoc committee of Yellowstone Club members supported the motion, according to the release.

"The sale will enable the Yellowstone Club to recapitalize its balance sheet and emerge from Chapter 11 well positioned for long term success," CrossHarbor said in the release.

Yellowstone's debt details

According to court documents, Yellowstone Club reported total assets of $600.0 million and total debt of $399.2 million at the time that the company filed for bankruptcy.

Its 10 largest unsecured creditors include:

• Allan Klenke, Houston, Texas, with a $450,000 contingent unliquidated claim;

• Edwards Frickle Anner-Hughes & Cuver, Billings, Mont., with a $363,859 claim;

• Garlington Lohn & Robinson, PLLP, Missoula, Mont., with a $344,700 claim;

• Timothy Devries, Ormono, Mont., with a contingent unliquidated $300,000 claim;

• David Epstein, Red Bank, N.J., with a $300,000 contingent unliquidated claim;

• William Weidner, Las Vegas, with a $300,000 contingent unliquidated claim;

• John Botti, Tiburon, Calif., with a $300,000 contingent unliquidated claim;

• Kewsong Lee, Larchmont, N.Y., with a $300,000 contingent unliquidated claim;

• Kimberly Watkins, Alpharetta, Ga., with a $300,000 contingent unliquidated claim; and

• Christopher Metz, Gulfstream, Fla., with a $300,000 contingent unliquidated claim.

Located in Big Sky, Mont., Yellowstone Club is a 13,400-acre private club in the Rocky Mountains. It filed for bankruptcy on Nov. 10, 2008. Its Chapter 11 case number is 08-61570.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.