On January 27, 2009, Credit Suisse filed a motion with the bankruptcy court requesting that the court direct and compel Yellowstone Mountain Club and its affiliates to immediately begin “a full, fair and open marketing process to identify prospective purchasers or investors for purposes of a sale or plan of reorganization of the Debtors’ Yellowstone Club businesses and properties.” Credit Suisse is the administrative agent and collateral agent for Yellowtone Mountain Club’s pre-bankruptcy lenders under a Credit Agreement dated September 30, 2005. Yellowstone Mountain Club filed for bankruptcy protection on November 10, 2008 in the United States Bankruptcy Court for the District of Montana.
The motion makes the following arguments in favor of the relief sought by Credit Suisse:
- A robust marketing process is necessary to maximize the value received for the assets or under a plan.
- Yellowstone Mountain Club has “intentionally . . . delayed commencing a robust Marketing Process due to pressures and directions exerted by CrossHarbor Capital Partners LLC and its affiliates to advance the insider interests of CrossHarbor and Edra Blixseth, the person ultimately in control of” Yellowstone Mountain Club. CrossHarbor has provided the debtor-in-possession financing in the cases and has allegedly asserted that commencement of a marketing process in advance of CrossHarbor proposing a plan of reorganization would constitute an event of default under the financing agreements.
- Immediate commencement of a marketing process is essential to maximizing value for creditors.
- Commencement of a marketing process is necessary to protect the pre-bankruptcy lenders’ interests in their collateral.
- Yellowstone Mountain Club had led the lenders and others to believe that a marketing process would be commenced in December 2008 but no marketing efforts have yet occurred. Instead, according to the motion, Yellowstone Mountain Club has chosen to negotiate exclusively with CrossHarbor.
UPDATE: Multiple significant pleadings were filed in the case on February 3, 2009, including a complaint filed by the Creditors’ Committee, a motion for appointment of an examiner, and a motion for bidding procedures filed by Yellowstone Mountain Club. Much more detail available here.
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Yellowstone Mountain Club Update « netDockets Corporate Restructuring and Bankruptcy Blog // February 5, 2009 at 2:59 am
[...] 5, 2009 · No Comments As was discussed in an earlier post (available here), significant disputes have arisen between, among others, Yellowstone Mountain Club (which filed [...]
Yellowstone Mountain Club Files Proposed Plan of Reorganization and Disclosure Statement « netDockets Corporate Restructuring and Bankruptcy Blog // February 16, 2009 at 5:51 am
[...] February 16, 2009 · No Comments On February 13, 2009, Yellowstone Mountain Club, LLC and its affiliates filed a proposed Plan of Reorganization and an accompanying proposed Disclosure Statement. As has been detailed earlier, the centerpiece of the proposed Plan of Reorganization is the sale of the Club to an affiliate of the company’s lenders, CrossHarbor Capital Partners LLC, subject to higher offers (for more details on the proposed sale procedures and the disputes surrounding the relationship between the company, its equityholders, and its lenders, please see earlier posts here and here). [...]