On Forbes 400 list before 2008 business bankruptcy, ex-billionaire has paid $141.07 to trustee
Less than a decade ago, real estate entrepreneur Tim Blixseth was on the Forbes 400 list, with an estimated net worth of $1.2 billion.
Now, after a divorce, the Yellowstone Club developer is dealing with its bankruptcy. A closed-door hearing is scheduled Monday in federal court in Butte, Montana, at which creditors are expected to grill him about his assets. Earlier this year, a federal judge ruled that Blixseth owed nearly $41 million to club-related creditors, Forbes reported at the time.
So far, a trustee for the Yellowstone Club Liquidating Trust has collected $141.07 from Blixseth, the Associated Press reports.
Blixseth and his lawyers claim that he has been stripped by his divorce, legal fees and the crash of the real estate market. He ceded ownership of the Yellowstone Club to his ex during the divorce, and it soon went bankrupt. Creditors are trying to get information about $200 million reportedly paid from a club loan to Blixseth and a former wife, which they say must be floating around somewhere.
“I don’t believe him, not for a minute,” said trustee Brian Glasser of Blixseth’s claim to have burned through all his money, “We’re going to try to figure out where everything is and where everything went.”
Associated Press: “Judge Considers Fraud Charges Against Blixseth”
ABAJournal.com: “Yellowstone Club Founder Says He’ll Seek Court Sanctions Against Montana”
Associated Press: “Court upholds contempt finding against Tim Blixseth”