Yellowstone Mountain Club files reorganization plan

By Caroline Salls

Pittsburgh, April 6 - Yellowstone Mountain Club, LLC filed a plan of reorganization and related disclosure statement Friday with the U.S. Bankruptcy Court for the District of Montana.

According to the disclosure statement, the plan calls for the continued operation and development of the company's project through the issuance of 100% of the membership interest in the reorganized Yellowstone in exchange for payment of at least $30 million in cash by a successful bidder and payments on a $70 million secured promissory note payable by the reorganized company or its successor.

Treatment of creditors will include:

• Holders of administrative claims, $1.2 million in priority tax claims, $212,000 of pre-bankruptcy priority claims, and convenience claims of $5,000 or less will be paid in full in cash;

• Holders of $1.6 million in other secured claims will either have their rights reinstated or receive the collateral securing the claim;

• The distribution for holders of pre-bankruptcy first-lien claims will depend on the allocated portion of the equity purchase payment. Based on this, these creditors will receive some or all of the promissory note paid for the issuance of new equity in the reorganized company;

• Holders of general unsecured claims, lender deficiency claims, Pioneer/Frontier member rejection claims and intercompany claims will receive distributions from the company's liquidating trusts, which will be used to liquidate all of Yellowstone's non-operating assets and avoidance actions;

• Holders of equity interests will be residual beneficiaries of the liquidating trusts, entitling them to receive trust distributions after payment in full of all other allowed claims;

• Holders of American Bank claims will receive interest only payments for 23 months and will receive the entire balance of the claim on the 24-month anniversary of the plan effective date;

• Holders of Prim Vintage Development, LP secured claims will retain their liens and be free to exercise their collateral-related rights. The collateral will not be re-vested in the reorganized company; and

• Holders of honorary member rejection claims, company member rejection claims and Founders Circle member rejection claims will receive trust distributions along with unsecured creditors and will have the option to waive their claims in exchange for a new membership agreement.

Located in Big Sky, Mont., Yellowstone Club is a 13,400-acre private club in the Rocky Mountains. It filed for bankruptcy on Nov. 10, 2008. Its Chapter 11 case number is 08-61570.

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