BILLINGS – Creditors owed tens of millions of dollars by the Yellowstone Club are seeking to sue Credit Suisse, accusing the financial firm of making a fraudulent $375 million loan that largely ended up in the pockets of the club’s owners.
The millionaires-only ski resort on 13,600 acres south of Bozeman has been under federal bankruptcy protection since November after falling almost $400 million into debt.
Attorneys representing hundreds of club members, unpaid employees and trade vendors say Credit Suisse knew when it made the 2005 loan that most of the money would never reach the club. They say club owners Tim and Edra Blixseth — not the club itself — should have to pay back up to $307 still owed on that loan.
The Blixseths divorced last year, leaving Edra in charge.