Wall Street's recent floundering has put crimps in plans of both Moonlight Basin and the Yellowstone Club located in southwest Montana. Moonlight Basin watched their construction plans stall after Lehman Brothers, its lender, filed for bankruptcy on Sept. 15. The bankruptcy left the 8,000-acre Moonlight tight on cash flow with three construction liens totaling around $195,000.
"The Lehman Brothers Chapter 11 filing has affected Moonlight Basin's business, as it has impacted many businesses across the country," said Moonlight Basin CEO Lee Poole. He added that the resort does not intend to declare bankruptcy. "We are working with several potential capital partners to complete a deal for sale of a partial equity position in our company," Poole explained, noting that Moonlight is looking forward to the ski season and will make sure contractors get paid.
Poole and two partners purchased the resort's property in 1992 for $6.5 million. Resort plans included building 1,250 new homes, a five-star hotel, and new ski lifts.
The upscale Yellowstone Club, also built on property purchased in 1992, had two liens totaling about $120,000 filed against it this month. Edra Blixseth recently assumed control of the company that she acquired in her divorce settlement from Tim Blixseth.
Bill Keegan, spokesperson for the Yellowstone Club, said they are working to resolve the liens.