Judge denies $229M repayment of Credit Suisse’s Yellowstone Club loan, cites ‘greedy antics’
By APWednesday, September 8, 2010
Judge slams Credit Suisse’s ‘greedy antics’
BILLINGS, Mont. — A federal bankruptcy judge says he will not reward the “greedy antics” of Swiss bank Credit Suisse by ordering the repayment of a $229 million loan it arranged for the exclusive Yellowstone Club.
Bankruptcy Judge Ralph Kirscher’s order Tuesday says Credit Suisse was complicit in diverting the money to club founder Tim Blixseth for his personal use.
Kirscher says Blixseth owes more than $40 million to other creditors, but Credit Suisse should not benefit from the judgment against him.
Blixseth says the $40 million figure was inflated by “bogus claims” and that federal authorities are investigating his ex-wife, Edra, on fraud allegations stemming from the case.
She denies the accusation. The U.S. Attorney’s office says it can neither confirm nor deny there is an investigation.
