BILLINGS – Yellowstone Club creditors want a federal bankruptcy judge to reconsider a ruling that let the resort’s founder off the hook for about $230 million.
U.S. Bankruptcy Judge Ralph Kirscher on Monday scheduled a Sept. 20 hearing on the matter in Billings.
Kirscher ruled two weeks ago that club founder Tim Blixseth must pay back only some of what he took from the club through a scheme to line his pockets.
That ruling could cost Blixseth an estimated $40 million. But he escaped judgment on $230 million in outstanding loans arranged through Credit Suisse. Kirscher says the financial firm was complicit in Blixseth’s scheme.
Attorneys for club creditors who want Blixseth to pay in full asked Kirscher on Friday to reconsider his ruling.