It seems that almost daily we hear about segments of the broad luxury market losing not only their luster, but even their footing. There are reports that luxury retailers are bracing for a crash slowdown, and that even real estate in super-rich Dubai is beginning to show signs of weakness.

In fact, says Tim Blixseth, It’s as if the whole world had a financial heart attack.

Wall Street’s credit crisis has not only invaded Main Street (and vice versa), but is crippling segments of the once-impervious luxury real estate market.

This morning, we hear that Blixseth’s Yellowstone Ski Resort has filed for Chapter 11 bankruptcy protection. This invitation-only ski and residence club for  340 uber-rich ($1.5 million buy in) is located in Montana’s Gallatin Mountains near Bozeman.  The club has 340 members including Bill Gates, former vice president Dan Quayle, Comcast’s Stephen Burke and cycling star Greg LeMond–and all have to be wondering if the resort will even open this season.

If Chapter 11 protection is granted and the club is able to get a $4.5 million loan, Yellowstone Resort will be able to open its powdery slopes this winter.  Looming on the other side of the mountain, though, is around $343 million in debt that is owed to creditors and contractors. Most of that debt, $307 million, is reportedly owed on a loan arranged by Credit Suisse in 2005.

Edra Blixseth took control of the resort last August, after her divorce from Tim Blixseth was finalized and has reportedly  been trying to sell some of the Blixseth’s other luxury properties located around the world. The Yellowstone Club is valued at $778 million, according to court filings–not including unsold memberships, which may be worth as much as $336 million.

Like other property holders and developers around the world, Yellowstone Club members and the Blixseths are hoping that recovery from this financial heart attack will quickly bring credit flowing through the world’s clogged financial arteries.

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Montana may come to be known as the land of Big Skies and Big Spenders.

Luxury Clues Bernice Ross reports a new entry in the Billionaire Poll: Lumber and land baron Tim Blixseth. His prime Yellowstone Club 53,000 square foot home in Bozeman, Montana will be entering the high end luxury home market at a record-breaking $155 million. Being promoted fully furnished, this ten-bedroom mountain estate boasts an indoor-outdoor swimming pool, a theater, and a gondola to Yellowstone Clubs coveted ski areas.

Private and exclusive Yellowstone Club (with its to-die-for Private Powder skiing) boasts a membership list that reportedly includes Bill Gates, Comcasts Stephen Burke and a host of other financial luminaries.

If he were so inclined, perhaps Mr. Blixseth could work out an exchange of his property with Donald Trump and his $125 million Palm Beach estate. And of course, there is always Saudi Prince Bandar bin Sultans 95 acre Aspen prize, the Hala Ranch. For additional reading about these and other world-class luxury estate offerings, see:

Breaking All Barriers: Luxury Homes Reach Nine Figures

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