CrossHarbor Capital to be Yellowstone "stalking horse" bidder

NEW YORK, March 9 (Reuters) - CrossHarbor Capital Partners LLC said Monday a federal bankruptcy court in Montana has approved the investment firm as the "stalking horse" bidder in the bankruptcy auction of the exclusive Yellowstone Mountain Club LLC ski and golf community.

A "stalking horse" makes the lead bid at a bankruptcy auction and creates a floor for the bidding, in exchange for certain protections that often include break-up fees.

Boston-based CrossHarbor, which specializes in distressed real estate assets, said in a statement it was bidding about $100 million for Yellowstone Club's equity and debts, and would provide at least $75 million in additional capital to Yellowstone.

Yellowstone Club, part luxury resort, part residential community for the ultra-wealthy, is located near Big Sky, Montana, and Yellowstone National Park. It filed for Chapter 11 bankruptcy protection in November.

Yellowstone's web site advertises condominiums with access to private ski areas for up to $8.75 million, and customized residences going for $16 million.

In its bankruptcy filing, Yellowstone Club listed assets and liabilities of between $100 million and $500 million.

The case is in Re: Yellowstone Mountain Club LLC, Case No.08-61570-11, U.S. Bankruptcy Court, District of Montana. (Reporting by Phil Wahba, editing by Maureen Bavdek)