The battle over the fate of private ski and golf resort Yellowstone Club has finally come to an end with private equity firm CrossHarbor Capital Partners buying the ultra-private vacation spot out of bankruptcy court for roughly $115 million, according to reports.
Boston-based CrossHarbor will also provide up to $75 million in working capital to Montana’s Yellowstone.
Credit Suisse dropped its opposition to the sale allowing CrossHarbor, run by Yellowstone member Sam Byrne, to move forward with the purchase. The Swiss bank had opposed the bid saying that the bankrupt club had done nothing to solicit or encourage other possible buyers and made it all but impossible for others to get involved in the bidding process.
CrossHarbor was accused of conspiring with former Yellowstone owner Edra Blixseth to buy the club on the cheap. CrossHarbor offered to buy the club for $470 million in 2008, but the deal fell apart as Yellowstone slid towards bankruptcy eventually filing for Chapter 11 protection at the end of the year. CrossHarbor also loaned Edra $35 million in August 2008 to help her buy out her husband’s 50 percent stake in the club following the couple’s contentious divorce proceedings.
The sale price of $115 million is slightly higher than the original stalking horse bid made by CrossHarbor in March of $100 million.
Credit Suisse also opposed CrossHarbor’s bid because of a $375 million loan made in 2005. The bank alleged the funds were misused by then owners Tim and Edra Blixseth for personal purposes. The bankruptcy court this week ruled that Credit Suisse had to get in line behind other creditors for the remaining $309 million owed to them, a ruling that has been vacated under the term of the sale.
Under the terms of the deal, CrossHarbor will pay $35 million in cash to Credit Suisse and take on $80 million in debt owed to the lender, the reports added.
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