You may not be aware of the super-exclusive Yellowstone Club Ski and Golf Resort outside of Bozeman, Montana, but if you were and if you had shelled out the $250,000 membership initiation fee, $16,000 annual fee and had built a multi-million dollar vacation home there, you’d likely be aware of the fact that they just filed for bankruptcy protection. Ouch!
So, while all the super-exclusive members of this club can still go to their posh homes around the 14,000 acre Yellowstone Club, they will not be riding up the resort’s five chairlifts anytime soon. In fact, with the credit market as tight as it is today, Credit Suisse may just decide to take ownership of the property and use it for executive retreats.
The resort is a great idea if you’ve got the money, but it sounds like the whole idea went to their heads with rumors of extravagant spending, private yachts and jets. Sound like any other money-grubbing companies over the past few years? Yeah… deja vu.
For more details on this train wreck, visit the Yahoo News story.
Here’s the news release on the Yellowstone Club’s bankruptcy filing:
Bozeman, Mont., Nov. 11, 2008—The Yellowstone Club filed for Chapter 11 bankruptcy protection yesterday, with a combined debt of $344 million and assets listed at $1.1 billion. The club is seeking court approval for a $4.5 million loan from Credit Suisse—to which it already owes $307 million—that would allow the resort to remain open and operate this winter, and asked for an expedited hearing for that purpose.
Over the past year, the club missed loan payments to Credit Suisse and has been trying to get construction back on track. In September, it contracted with Discovery Land Co. of Scottsdale, Ariz., to manage the club and build out the residential community, infrastructure and amenities. The club has blamed the economic and real estate downturns and tight credit markets for its squeeze. Critics have cited runaway spending on luxury jets, yachts, and foreign estates.
you all think this is funny for the millionaires loosing their money, but some of us are relaying on the yellowstone club to pay for our houses. real funny
I seriously doubt you actually have a place at the Yellowstone Club, but no I don’t think it’s funny, but a sad reality of what happens when greed and opulence goes to your head. The concept is awesome and if I had the dough, I’d love my own private resort and amazing vacation home.
As we see time and time again, the people at the top think they are entitled to something, so they squander their supposed wealth on expensive toys and make poor investment decisions that end up hurting the innocent. In this case, the innocent happen to be the upper crust, which goes to show that everyone gets the shaft when bad apples are left in charge.
follow the links to yahoo for more info
This same thing happened at Promontory in Park City. As a project engineer it has put my job at risk and has caused much greater impacts on the Park City economy. The people it really hurts are the ones in the construction and service industry.