The economic downfall is hammering the elite contingent of society once again (Madoff did today’s first honors), with the possible sale of the ridiculously-priced Yellowstone Club near Yellowstone National Park. The Canadian Press reports:
The Yellowstone Club, an exclusive haven for the ultrarich now under federal bankruptcy protection, could be sold for $100 million to a Boston financial firm. Documents filed by club attorneys show an affiliate of CrossHarbor Capital Partners LLC has agreed to pay $30 million in cash and $70 million in a promissory note for the 5,300 hectare club near Yellowstone National Park.
That $175-million investment comes up far short of prior appraisals of the club, which has been valued at anywhere from $310 million to $780 million.
The club counts Dan Quayle and Bill Gates among its 340 members, yet had been only partially developed when it fell more than $400 million in debt last year. An attorney for creditors still owed money by the club said Wednesday that he was reviewing the CrossHarbor offer.
Thomas Beckett with the Unsecured Creditors Committee said any deal would have to protect members who ponied up deposits of $250,000 to $300,000 to join the club. It also would need to repay the dozens of local contractors and other vendors still owed money.
You know there’s something amiss when the country club has to be bailed out.