Former billionaire reaches $3 million deal with creditors

BILLINGS, Mont. (AP) — Former billionaire real estate developer Tim Blixseth has reached a $3 million settlement to resolve claims he illegally pocketed hundreds of millions of dollars from a Montana resort for the superrich.

The agreement between Blixseth and creditors for the Yellowstone Club was revealed in court documents filed late Friday.

Blixseth founded the posh resort near Big Sky that has attracted celebrity members including Microsoft co-founder Bill Gates and former Vice President Dan Quayle.

It went bankrupt in 2008 and has since come under new ownership.

The $3 million payment to its creditors is a pittance compared to $525 million in court judgments they have against Blixseth. It won't even cover their litigation costs.

But creditors' attorneys say it was the best they could do after Blixseth lost his fortune.