(Reuters) – A U.S. bankruptcy judge has approved investment firm CrossHarbor Capital Partners LLC’s $115 million purchase of Yellowstone Mountain Club LLC ski and golf resort, court documents showed.
Judge Ralph Kirscher of the U.S. Bankruptcy Court in Montana approved the sale and the club’s reorganization on Tuesday, according to the documents.
Boston-based CrossHarbor, which specializes in distressed real estate assets, agreed to pay $35 million in cash and assume $80 million in debt owed to Credit Suisse Group AG, (CSGN.VX) according to a May 18 court filing.
As of early May, Credit Suisse had a lien of $232 million on Yellowstone on a loan of $375 million.
Credit Suisse, which was fighting CrossHarbor in the federal court over its Yellowstone bid, dropped its opposition to the purchase and reorganisation of the resort.
Yellowstone, part luxury resort and part residential community for the ultra-wealthy near Big Sky, Montana, and Yellowstone National Park, filed for Chapter 11 bankruptcy protection in November. Credit Suisse lent the resort $375 million just before it went bankrupt and as of May it had a lien of $232 million on the club.
Judge Kirscher ruled in May that Credit Suisse’s $375 million loan to Yellowstone before the club’s bankruptcy was “predatory” and ruled the company would have to get behind other creditors before getting paid the balance owing on the loan. [ID:nN13462907]
In its bankruptcy filing, Yellowstone Club listed assets and liabilities of between $100 million and $500 million.
The case is in Re: Yellowstone Mountain Club LLC, Case No.08-61570-11, U.S. Bankruptcy Court, District of Montana.
By Ajay Kamalakaran
(Editing by Karen Foster)