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Yellowstone Mountain Club lenders request changes to bid procedures
By Caroline Salls
Pittsburgh, March 17 - Yellowstone Mountain Club, LLC's pre-bankruptcy lenders asked the U.S. Bankruptcy Court for the District of Montana to change the bidding procedures for the proposed sale of the company's assets, to allow the lenders to credit bid and to allow an examiner to evaluate qualified alternative bids, according to a Monday court filing.
Administrative and collateral agent Credit Suisse said the court has expressed concerns about some of the bid procedures, including the $3 million in fees and expenses that would be paid to stalking horse bidder CrossHarbor if it is not the high bidder at auction.
Given the court's concerns and CrossHarbor's involvement with the company, CrossHarbor's stalking horse status, its "attempt to circumvent" the court's previous discovery order and the need to scrutinize the dealings between Yellowstone and the stalking horse bidder, the lender agent said the court made it clear that it would be open to changing the bid procedures to promote bidding.
Credit Suisse said the pre-bankruptcy lenders did propose alternative bidding procedures that were rejected by CrossHarbor.
Among the changes proposed by the lenders is an extension of the bid deadline to May 11 from April 20 and elimination of the "bid chilling" $2 million termination fee and $1 million expense reimbursement.
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.
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