Glamour of an Ultra Rich Bankruptcy

What do Microsoft founder Bill Gates, former Vice-President Dan Quayle and Greg LeMond have in common.  They are members of the ultra rich Yellowstone Club.  Oh, the Yellowstone Club filed bankruptcy.  Associated Press writer Matthew Brown reports in Exclusive mountain retreat for the ultra rich “The gated, millionaires-only club on 13,400 acres in Montana’s Gallatin Mountains boasts a private ski hill and golf course.”

I wonder whether it received daily debt collection phone calls starting at 8 a.m., or whether it saw the hundreds of television commercials warning not to ruin its credit.  Do you think it had trouble using its credit card to buy groceries, or to pay the power bill online?

When rich folks file bankruptcy the storyline is about glamour.  For a look at the high end pawnshops of Beverly Hills, see my blog Pawnstyles of the Rich and Famous.  The Yellowstone Club bankruptcy dramatizes the divorce of billionaire founders, Tim and Edra Blixseth.  The couple went on a buying spree of property in France, Scotland, Mexico and the Carribean, only to have to sell some exotic getaways to make ends meet after the Yellowstone Club could not find financing to operate. And cycle superstar Greg LeMond sued his own club for $39.5 million dollars.  The story cries out “Extra Extra Read All About It”.

No, the average Joe files bankruptcy and hangs his head.  He has to endure the stigma of a lowered credit score and demeaning questions from a high paid bankruptcy trustee.  Rich people file bankruptcy and complain about credit markets freezing.

“The lending markets froze up so they could not structure a credit facility to their fashion,” club spokesman Bill Keegan said. “They felt this was the best way to protect the members and protect the club and its future.”, writes Brown in the AP article.

Average Joe does not have a spokesman, heck even if he still has a phone, he is afraid to answer it.