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<DIV><FONT size=2>Let's help this poor critter out by giving him a great deal
with the proposed land exchange. NOT!</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>w.</FONT></DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; PADDING-LEFT: 5px; PADDING-RIGHT: 0px; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="FONT: 10pt arial; BACKGROUND: #e4e4e4; font-color: black"><B>From:</B>
<A title=thansen@moscow.com href="mailto:thansen@moscow.com">Tom Hansen</A>
</DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A title=vision2020@moscow.com
href="mailto:vision2020@moscow.com">Moscow Vision 2020</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Cc:</B> <A title=ponysnpups@gmail.com
href="mailto:ponysnpups@gmail.com">Kathy Judson</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Wednesday, August 18, 2010 5:42
AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> [Vision2020] Lochsa Land
Exchange and Bankruptcies</DIV>
<DIV><BR></DIV>Courtesy of NewWest at:<BR><BR><A
href="http://tinyurl.com/NewWest-on-Blixseth-Bankruptcy">http://tinyurl.com/NewWest-on-Blixseth-Bankruptcy</A><BR><BR>-------------------------------------------------------<BR><BR>Judge:
Blixseth Responsible for Yellowstone Club's Collapse<BR><BR>In a scathing
decision released this week, Judge Ralph B. Kirscher rules<BR>that Yellowstone
Club founder Tim Blixseth's dealings caused the resort's<BR>bankruptcy. But,
lender Credit Suisse doesn't get off scot free either.<BR><BR>By Courtney
Lowery<BR><BR>Federal Bankruptcy Judge Ralph B. Kirscher did not mince many
words in a<BR>decision released this week in the Yellowstone Club bankruptcy
case: Tim<BR>Blixseth's "pattern of self-dealing," is what ultimately led to
the crash<BR>of the exclusive Montana resort.<BR><BR>But, that doesn't mean
he'll be on the hook for all the club's debts.<BR>Some, but not all. And, the
club's lender, Credit Suisse, who's loan was<BR>at the center of the long,
brutal battle over the club's finances, was no<BR>saint either.<BR><BR>A large
issue in the resort's bankruptcy case has been the $375 million<BR>loan from
Credit Suisse that quickly evaporated after it closed. Not being<BR>able to
pay that loan back was the crux of the resort's bankruptcy filing<BR>in fall
of 2008. The club has since emerged from bankruptcy under
new<BR>ownership.<BR><BR>Blixseth was accused of pocketing the Credit Suisse
loan for private jets<BR>and other lavish purchases and the bank was charged
with being<BR>irresponsible, flippant even, in making the loan. At one point
during the<BR>trial, it came out that the fees for the loan were worked out on
a coin<BR>toss. One of the club's attorney's Troy Greenfield put it this way
last<BR>spring: ""The corporate greed of Credit Suisse and Mr. Blixseth's
sense of<BR>entitlement" created a toxic combination.<BR><BR>And in fact,
Kirscher's decision found that, "Contrary to Blixseth's<BR>arguments, the
Credit Suisse loan was created so that resort owners, such<BR>as Blixseth,
could extract large distributions from their development<BR>projects, without
the need for any personal guarantee. Thus, the overall<BR>purpose of the loan
was not for development of the Yellowstone Club, but<BR>instead, the purpose
was to permit Blixseth to take money out of the<BR>Yellowstone Club and in
fact, the record shows that very little, if any,<BR>of the Credit Suisse loan
proceeds were used to fund development and<BR>construction at the Yellowstone
Club."<BR><BR>On Credit Suisse, Kirscher wrote: "In this case, Credit Suisse
and the<BR>Prepetition Lenders are just as a culpable as Blixseth," wrote
Kirscher.<BR>He went on, "If Credit Suisse had wanted to go after Blixseth in
the event<BR>of a default, it should have included such provision in the
Credit<BR>Agreement. This it did not do. Blixseth and Credit Suisse have done
a lot<BR>of finger pointing in this case, but in the end, their conduct
prompted<BR>Debtors' bankruptcies."<BR><BR>As for Blixseth's claims that the
bankruptcy was caused by early<BR>litigation from Greg LeMond, the management
of the club under his ex-wife<BR>Edra or a fallen-through deal with Sam Byrne
and CrossHarbor Capital,<BR>Kirscher called hooey on all of
them.<BR><BR>"Blixseth blames theDebtors' downfall on the lawsuit filed by the
LeMond<BR>Plaintiffs, the alleged conspiracy between Edra and Byrne, and
Byrne's<BR>failure to follow through with purchase of the Yellowstone Club in
2008.<BR>Given the evidence, Blixseth's arguments are without support," he
wrote.<BR><BR>Attorneys tell Matthew Brown of the Associated Press that
Blixseth is<BR>likely to have to pay up for $20-65 million of the club's debt.
The club's<BR>total debt still looming is estimated at more than $200
million.<BR><BR>----------------<BR><BR>Memorandum of Decision filed on August
17, 2010<BR><BR><A
href="http://www.MoscowCares.com/Lochsa/Decision_BR_081710.pdf">http://www.MoscowCares.com/Lochsa/Decision_BR_081710.pdf</A><BR><BR>----------------<BR><BR>Tim
Blixseth leaves federal court in Missoula last year.<BR>(NewWest photo by
Daniel Doherty)<BR><BR><A
href="http://tinyurl.com/Tim-Blixseth-2009">http://tinyurl.com/Tim-Blixseth-2009</A><BR><BR>-------------------------------------------------------<BR><BR>"Oh,
what a wicked web we weave . . . "<BR><BR>Seeya round town, Moscow.<BR><BR>Tom
Hansen<BR>Moscow, Idaho<BR><BR>"The Pessimist complains about the wind, the
Optimist expects it to change<BR>and the Realist adjusts his sails."<BR><BR>-
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