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Creditors ask judge to keep former billionaire in Montana jail where he's been since April

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BILLINGS, Montana — Creditors of Montana's Yellowstone Club for the ultra-rich said Friday that its founder should remain in the jail, where he has been held for almost two months for not disclosing what happened to $13.8 million from a property sale in Mexico.

Onetime billionaire Tim Blixseth, 65, of Medina, Washington, has been pursued by the exclusive club's creditors since it went bankrupt in 2008 and was sold to new owners. Attorneys for the creditors say Blixseth owes their clients $286 million that he drained from the club for personal use.

On Friday, they described as a repackaged mishmash more than 9,000 pages of financial documents submitted by Blixseth last week as he seeks to be freed from the Cascade County jail.

U.S. District Judge Sam Haddon jailed Blixseth on April 20 over his incomplete accounting of the Mexico property sale, which was made in defiance of a previous court order.

"All he needs to do is turn his attention to actually accounting for the proceeds and following through all the way to the end in order to get out of jail," said Kevin Barrett, an attorney with the West Virginia law firm Bailey and Glasser who represents the creditors through the Yellowstone Club Liquidating Trust.

Also on Friday, Haddon was asked to extend the April civil contempt order against Blixseth to include his wife, son and various corporate entities. Those parties received money from the Mexico resort, according to Barrett, and should have known about the court order barring its sale.

Blixseth's attorneys did not immediately respond to requests for comment.

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