Millionaire Rustic Retreat Files for Bankruptcy

The Yellowstone Club, an exclusive mountain retreat for the ultra-rich that was to feature the world's most expensive log and timber home (rumored to be $120 million), filed for bankruptcy Monday after failing to secure new financing, according to a report by the Associated Press.

This bankruptcy filing underscores the new reality that even the elite can't escape the tightened lending conditions.

Launched by billionaires Timothy and Edra Blixseth in 1999, YellowStone Club is a millionaires-only gated community on 13,400 acres in Montana's Gallatin Mountains. It boasts a private ski hill and golf course, as well as scores of luxurious log and timber residences. It counts former Vice President Dan Quayle and Microsoft co-founder Bill Gates among its 340 members.

Monday's bankruptcy filing marked the latest in a string of legal brawls that involved the exclusive community. Billionaires Tim and Edra Blixseth recently divorced. In the settlement, Edra Blixseth gained control of Yellowstone Club. In September of this year she laid out ambitious plans to build 450 more houses and new amenities, including a luxury spa, golf clubhouse, baseball field and more ski runs--all plans presumably put on hold now with this bankrupcty filing.

In other legal ranglings, in August the club settled a lawsuit brought by club member and cycling superstar Greg LeMond for $39.5 million. LeMond and several co-plaintiffs had accused Tim Blixseth of trying to buy out their minority stake in the club for less than its true value.

For the full AP story, click here.