APNewsBreak: Ex-billionaire's bankruptcy tossed

May 18, 2011 - 8:43 PM

BILLINGS, Mont. (AP) — Embattled former billionaire Tim Blixseth says a federal judge has dismissed a forced bankruptcy petition filed by Montana authorities who alleged he owes $57 million in back taxes.

The former owner of Montana's ultra-exclusive Yellowstone Club said Wednesday he will pursue sanctions against the state of Montana and its attorneys for what he called a "bad faith" petition.

The litigation could have forced him to liquidate his assets if it had been successful.

Blixseth's attorneys said the case was dismissed by U.S. Bankruptcy Judge Bruce Markell in Nevada because their client has no assets in the state.

Blixseth paid $1.9 million in back taxes to California and Idaho last month to get them to withdraw as plaintiffs in the case.