HELENA – Wachovia Bank has sued Yellowstone Club co-founder Edra Blixseth in federal bankruptcy court, to prevent $8 million in loans it made to Blixseth from being eliminated as she attempts to reorganize her finances.
Blixseth filed for personal bankruptcy protection in March with more than $150 million in debt.
She is selling the ultra-exclusive Yellowstone Club and its private ski resort near Yellowstone National Park for $115 million. The proceeds will go to the club’s creditors.
North Carolina-based Wachovia issued Blixseth two loans last year to develop her computer software company, Blxware. Its suit, filed Wednesday, asks U.S. Bankruptcy Judge Ralph Kirscher to shield the loan from Blixseth’s efforts to reorganize her business dealings.
The bank says Blixseth falsely stated that Blxware was not involved in litigation when it issued the loan. Two lawsuits involving the company were pending.
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