CrossHarbor Completes Yellowstone Club Acquistion

CrossHarbor Capital Partners has completed its acquisition of the equity interests in the Yellowstone Club, a Big Sky, Montana-based ski and golf resort.


An investment partnership led by CrossHarbor Capital Partners, LLC, a national leader in commercial real estate investment, and comprised of a large group of Yellowstone Club members and Discovery Land Company LLC, today announced that it has completed the acquisition of the equity interests in the reorganized Yellowstone Club (“the Club”). Together with Discovery Land Company, CrossHarbor will manage and develop the private, world class ski and golf resort.

“We are pleased that we have acquired the Yellowstone Club so that we can provide the leadership, professional management and development expertise needed to ensure its long-term success,” said Sam Byrne, Managing Partner and Co-Founder of CrossHarbor Capital Partners. “Today, the Club emerges from Chapter 11 as a well capitalized enterprise, positioned to maintain and build on its premier status for the benefit of the Club’s members, employees and the Big Sky community. With a solid business plan now in place, we are confident that the Club has a very bright future.”

Mike Meldman of Discovery Land Company stated, “This is an important milestone for the Yellowstone Club. Most of all, we thank the Club’s members and employees, who have worked tirelessly over the past nine months to make this transaction a reality. This is the start of a new chapter in the history of the Yellowstone Club, and we look forward to working closely with CrossHarbor, the members, all of the employees and the Big Sky community.”

As previously announced, on November 9, 2008 the Yellowstone Club filed for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Montana (“the Court”). Under the Chapter 11 Plan of Reorganization confirmed by the Court on June 3, 2009, a $15 million fund will be established by CrossHarbor to ensure payment to local trade and other creditors of the Club, and it is anticipated that the allowed claims of all or substantially all general unsecured creditors will be paid in full. The designation of beneficiaries of the Trade Creditor Fund and reconciliation and allowance of their claims is proceeding on an expedited basis, in order that payments can be made as soon as possible. It is expected that most, if not all, such payments will be made in the next 30 to 60 days.

Duane Morris LLP, Goulston & Storrs, P.C., and Crowley Fleck P.L.L.P. served as CrossHarbor’s legal advisors and Goldman, Sachs & Co. served as financial advisor.

About CrossHarbor

CrossHarbor Capital Partners is a leading alternative investment firm specializing principally in real estate as well as distressed securities and private equity.

About Discovery Land Company

Discovery Land Company is one of the leading private-club and community developers in North America, having developed 16 successful luxury private clubs including Kukio on the Big Island of Hawaii; El Dorado in Los Cabos, Mexico, Madison Club in La Quinta, California, and Baker’s Bay in the Abaco Islands of the Bahamas.

About Yellowstone Club

Located in Big Sky, Montana, Yellowstone Club, “The World’s Only Private Ski and Golf Community,” is nestled on nearly 14,000 acres of private land near the northwest corner of Yellowstone National Park. Established in 2000, Yellowstone Club is limited to just 864 exclusive residential properties.