• 18
  • May
    2011

A former billionaire fought a government petition to force him into bankruptcy and the petition against him was dismissed by a federal judge this week. Tim Blixseth was the billionaire founder of the Yellowstone Club of Montana, an exclusive resort. He said he now intends to go after the Montana Department of Revenue for filing a bad faith petition, according to The Associated Press, in order to try to get sanctions filed against them. If they are sanctioned, it could mean that Blixseth will actually be the one who is paid money, possibly hundreds of thousands of dollars.

Blixseth said that the government treated him badly. He said that he was glad that he at least had the resources to mount a strong defense against the forced liquidation of his assets, and hoped the same thing wouldn't happen to other Americans who might not be able to fight it as aggressively as he could.

The 60-year-old has been in disputes with a few state governments related to the bankruptcy of the Yellowstone Club in 2008. The authorities accuse him of taking money out of the Yellowstone Club before it filed for bankruptcy. These authorities and creditors claimed that the money he took out totaled in the hundreds of millions.

Blixseth claims that this money was a legitimate loan and says that the Internal Revenue Service viewed it as such in the past. The loan came from Credit Suisse and totaled $375 million, according to the AP. He says that it was a loan; the authorities say it should be taxable income, but failed in the attempt to force him to pay back taxes on the money.

Source:

Ex-billionaire's bankruptcy tossed (The Sacramento Bee)