BILLINGS – A federal bankruptcy judge has approved a plan to auction the financially troubled Yellowstone Club to the highest bidder.
Judge Ralph Kirscher also approved CrossHarbor Capital Partners LLC as the club’s “stalking horse bidder.” That means the Boston investment firm’s $100 million bid will set the auction’s floor price.
The resort for the super wealthy south of Bozeman is in the midst of a Chapter 11 bankruptcy reorganization after the real estate market soured and the club’s owners diverted hundreds of millions of dollars from the resort’s operations. Recently filed court documents show creditors have made claims against the club topping $433 million — $34 million more than previously reported.
The auction will begin 10 days before a confirmation hearing on the reorganization plan. That hearing has not been scheduled.