Tim Blixseth, following the bankruptcy of the exclusive Yellowstone Club in Montana, is seeking mediation to resolve disputes arising from multiple lawsuits and claims that have been filed against him.  The former billionaire now lives in Washington state and is dealing with the potential fallout of a $41 million fraud judgment against him for his part in handling (or in this case, mishandling) the finances of the failed Yellowstone Club.  Additionally, Blixseth owes an alleged $57 million in back taxes to the IRS.

Due to the overwhelming number of claims and suits being brought against their client, attorneys for Blixseth have requested that Sam Haddon, the U.S. District Judge overseeing Blixseth’s multiple cases, mandate court-ordered mediation to assist Blixseth in resolving the multiple disputes.  If court-ordered mediation occurs, the parties involved in the mediation process would include some big players, such as the new owners of the Yellowstone Club, CrossHarbor Capital Partners LLC; Credit Suisse; and the trustee for the estate of his ex-wife, Edra Blixseth. 

The action that prompted Blixseth and his attorneys to pursue mediation is an action filed by officials in Montana to force Blixseth into bankruptcy court in Nevada.  However, in a recent interview with The Associated Press, Blixseth stated that he was giving his opponents "one chance ... to try and resolve the past five years (of) attacks on me and my family. The choice is simply theirs."  Although mediation might offer some respite from the mountain of claims against him, Blixseth’s attorneys are doubtful that it will resolve the worst of Blixseth’s problems. 

The worst of these claims stems from a 2010 decision from the bankruptcy proceedings of the Yellowstone Club, in which a federal bankruptcy judge ruled that Blixseth committed fraud by making personal use of a $375 million loan given to the Yellowstone Club by Credit Suisse.  The loan was ultimately blamed on the eventual fallout and ensuing bankruptcy of the club. 

To make matters worse, when the resort was going through difficult times in 2008, Blixseth gave the ownership of the club over to Edra Blixseth, his spouse, who was divorcing him.  Unaware of the club’s financial troubles, she agreed to take the club and give her husband the remainder of the couple’s assets.  When the club was forced to go bankrupt two years later, and Tim Blixseth was indicted for fraud and for playing a role in the club’s financial failure, his ex-wife was left with a financial mess that was worth very little.