Tamarack creditors, Swiss bank in bankruptcy fight

AP News
Posted: Dec 21, 2009 4:32 PM

A Swiss bank seeking some $300 million from Tamarack Resort should go to the end of the line when it comes to getting repaid, other creditors argue in U.S. Bankruptcy Court.

In documents filed Friday, Petra Inc., an Idaho construction company demanding $1.4 million from Tamarack, contends Credit Suisse Group's 2006 construction loan to the central Idaho resort is similar to a separate $375 million loan the Zurich-based bank made to Montana's Yellowstone Club.

In Montana, a judge concluded Credit Suisse's loan was predatory and subordinated it other creditors' demands.

The Montana judge later vacated that order amid a settlement, but Petra says Credit Suisse's loan in Idaho should get similar treatment.

Credit Suisse, meanwhile, wants the case returned to Idaho's 4th District Court for a foreclosure trial in March.

The bank argues a bankruptcy case will only delay conclusion of the already 2-year-old legal battle following Tamarack's failure.