Yellowstone Club co-founder Edra Blixseth could face a forced sale of her private property after a federal judge ruled that she had “abused the bankruptcy process” by failing to insure her many houses, cars and other assets.
Blixseth is selling the ultra-exclusive Yellowstone Club for $115 million – far less than the resort was once worth and not nearly enough to salvage her own broken finances.
Citing Blixseth’s failure to obtain insurance despite repeated requests from officials, U.S. Bankruptcy Judge Ralph Kirscher recently converted her bankruptcy case to a Chapter 7 proceeding. That could compel her to sell off almost everything she owns to cover more than $150 million in debts.
Blixseth says in court filings that she obtained insurance after some delay. She wants Kirscher to reverse his ruling.
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