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Court rejects bid to put Blixseth into bankruptcy

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BILLINGS, Mont. (AP) — For the second time, a federal judge has turned back an attempt by Montana authorities to force former billionaire Tim Blixseth into bankruptcy to recover $57 million in alleged back taxes.

U.S. Bankruptcy Judge Bruce Markell in Las Vegas dismissed the state's lawsuit in a ruling Wednesday that said the case failed to meet the requirements for a forced bankruptcy under federal law.

At least three undisputed creditors must participate in such a case, but Markell noted Blixseth had challenged his Montana tax bill and others submitted by Idaho and California.

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