The Yellowstone Club, the Rocky Mountain playground of Bill Gates and other billionaires, has filed for Chapter 11 bankruptcy protection, citing a cash crunch and a poor real-estate market.

The filing is the latest in a string of controversies surrounding Yellowstone. It is also an indication that the financial crisis has reached even the most gilded resorts and real-estate communities.

In a letter to members Monday, club owner Edra Blixseth said the 'unprecedented economic events' of recent weeks have forced Yellowstone to seek protection from its creditors. She said the club will be open for ski season with no disruption of services. But, she added, the 'current financial situation is negatively affecting club operations, employee morale and the confidence of vendors.'

Yellowstone, a private golf and ski community with more than 350 members, including Mr. Gates and Dan Quayle, is nestled near Big Sky, Mont.

Its current financial troubles stem largely from a $375 million loan provided by Credit Suisse Group in 2005. The loan, secured by the club's assets, was used to fund an overseasexpansion, dubbed Yellowstone Club World, that later folded. Ms. Blixseth hoped to sell some of the Club World properties -- including a castle outside Paris -- to help service the loan. But the sales haven't materialized.

Robert Frank