Ex-billionaire hit with forced bankruptcy petition

Lawyer Blogs

Taxing authorities from three states have filed an involuntary bankruptcy petition against former billionaire Tim Blixseth.

The petition says the real estate baron owes $2.3 million in California, Idaho and Montana. It was filed Tuesday in U.S. Bankruptcy Court in Nevada.

Blixseth rose to fame and fortune after founding Montana's ultra-exclusive Yellowstone Club. He left the winter playground for Bill Gates and others before its 2008 bankruptcy. Creditors say he made off with $286 million.

Earlier allegations of unpaid taxes in Montana have been contested by Blixseth as unfounded.

He told The Associated Press Wednesday that the bankruptcy petition stemmed from Montana's "bogus" claims and pledged to fight it.

Blixseth's value was once pegged by Forbes magazine at $1.3 billion. Court documents now put the figure at roughly $230 million.


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