The founder of the high-end Yellowstone Club resort near Big Sky agreed Friday to pay $3 million to investors who said they were owed hundreds of millions, according to court documents.
The payment from Tim Blixseth will not even cover the legal fees of members of the Yellowstone Club, but it will end nearly a decade of legal wrangling in bankruptcy court, according to documents filed Friday in Montana District Court in Butte.
The creditors agreed to take a fraction of the $525 million they say they're owed, largely because they believe Blixseth has no more assets, their attorneys wrote in court documents. The $3 million payment will be made to an Oregon real estate developer, who will then distribute it to a trustee for the creditors, according to The Associated Press.
Blixseth founded the Yellowstone Club in the 1990s, and it became known as a hangout for vacationing celebrities, national political figures and others in high-class society.
The billionnaire developer ran into trouble in 2008, following a divorce and in the wake of the financial crisis.
The Yellowstone Club later went bankrupt, and it reopened under different owners.
Blixseth has been involved in dozens of lawsuits in multiple states over the last decade, mostly involving the collapse of the resort. He hit a low point in 2015, when he was booked into Missoula County jail on contempt charges for failing to explain what happened to $14 million generated from the sale of a Mexican resort. That money was sought by creditors, according to news reports at the time.