CrossHarbor Capital Partners has been named “stalking horse” bidder in the proposed sale of equity interests in the Yellowstone Club. CrossHarbor’s bid is approximately $100 million.
CrossHarbor Capital Partners, LLC, a national leader in commercial real estate investment, today announced that the U.S. Bankruptcy Court for the District of Montana (“the Court”) has approved the Yellowstone Club’s (“the Club”) motion to approve plan solicitation procedures that include the appointment of CrossHarbor as the lead or “stalking horse” bidder in the proposed sale of the equity interests in the Yellowstone Club pursuant to the Club’s Chapter 11 Plan. The motion was supported by the Official Committee of Unsecured Creditors and the Ad Hoc Yellowstone Club Members Committee, which represents a majority of the Yellowstone Club’s members and homeowners.
CrossHarbor’s bid provides for a purchase price of approximately $100 million, subject to higher and better offers, as well as the assumption of various liabilities, including, among others, some or all of the Club’s obligations to existing members. In addition, CrossHarbor has agreed to provide additional capital of at least $75 million to the reorganized Club, as well as to commit up to $7.5 million of CrossHarbor’s funds for payment of the claims of local trade and other creditors to preserve and enhance the reputation and good standing of the reorganized Club in the Big Sky and Yellowstone Club communities and in recognition of the sacrifice and hardships endured by such creditors as a result of the financial problems of the Club.
CrossHarbor’s bid provides the Yellowstone Club with the opportunity to proceed to confirmation of its plan and emergence as the world’s only private ski and golf community, with first-class mountain resort amenities. In addition, it provides certainty regarding the continued operation of the Club.
The Court has also approved the timeline and plan solicitation procedures for the Court-supervised auction proposed in the Yellowstone Club’s Plan of Reorganization. Third party bidders will be able to submit qualified alternative offers on or before ten days prior to the confirmation hearing. If additional qualified bids are submitted, an auction will be held five days prior to the Confirmation Hearing, which likely will be scheduled for some time during the period April 30, 2009, to May 21, 2009.
Pending confirmation, the Club will continue to operate with the debtor-in-possession financing previously provided by a CrossHarbor affiliate.
CrossHarbor issued the following statement:
We are pleased that the Court has approved the proposed plan
solicitation procedures for the Yellowstone Club and has approved
CrossHarbor as the stalking horse bidder, ensuring that the sale
will be completed in a speedy and orderly manner and that the
operations of the Club will continue as normal. The sale will
enable the Yellowstone Club to recapitalize its balance sheet and
emerge from Chapter 11 well-positioned for long-term success.
CrossHarbor is committed to the Yellowstone Club and to protecting
the interests of the Club’s members, trade creditors and other
stakeholders. Throughout this process, CrossHarbor has operated
with transparency and integrity, and we look forward to continuing
to work through the Court-supervised auction process to reach an
outcome that is in the best interests of the Yellowstone Club.
CrossHarbor Capital Partners is a leading alternative investment firm specializing principally in real estate as well as distressed securities and private equity.