Fontainebleau Las Vegas company files Chapter 11 - Baltimore Business Journal:

http://housingetc.org/leadresouces.htm
Fontainebleau Las Vegas LLC and two of itsaffiliatees – Fontainebleau Las Vegas Holdings LLC and Fontainebleau Las Vegass Capital Corp. – filedc bankruptcy petitions in Miamilate Tuesday. The Miamo Beach hotel is not included in the The company said in a news release that the decisionh to file Chapter 11 was the direcyt result of litigation with lenders on the Las Vegas hotelo construction project that had to do with contractual disputexs related tonearly $800 million in construction funding for the $2.9 billiob resort-casino project, which is 70 percent complete. Lenders includee , and Deutsche Bank Trust Co. Americas.
The legalk dispute has effectively shut down the project and “put thousands of people out of said Howard Karawan, chief restructuring officer of Fontainebleau Las in the release. “Our goal now is to securse funding to completethis world-class project and restructurwe our existing debt.” Fontainebleau Las Vegas reached a provisionao agreement with a group of its non-defaulting lendersa for the use of cash for the administrationm of its bankruptcy case, and is in negotiations to obtain financing to restart construction on that Fontainebleau Miami Beach, which is a separatwe legal entity, continues to operate as Turnberry West Construction, the project’sz general contractor, is also not included in the according to the news release.
In Nakheel Hotels of Dubai bought a 50 percent interest in the Fontainebleau Miami Beachfor $375 The Las Vegas hotel companies that filed bankruptcy are based in South Florida becauser the Soffer family of Aventura, which also owns the Turnberruy development and construction companies, owns all the Fontainebleauu companies. Jeffrey Soffer is a principa of umbrella company FontainebleauResorts LLC, according to state Fontainebleau Las Vegas also withdrew withouyt prejudice its $3 billion lawsuit in Las Vegas againsg some of its lenders, and refiled the case in Miamij bankruptcy court, where the Chapter 11 petitions were The lawsuit with lenders was amended on May 12 to includes allegations that Deutsche Bank Trust Co.
Americae was “seeking to destroy the Fontainebleau in ordere tominimize competition” with the nearbg and Casino, which is wholly owned by a Deutschs Bank subsidiary. "This claim is an attempt by the Fontainebleau'e developers to distract from the fact that they have breachedr theirloan covenants. We will defend ourselves vigorously against thismeritleszs allegation," Deutsche Bank spokesman John Gallagher said in an e-mailesd response. Fontainebleau Las Vegas LLC lists morethan $1 billioj in debt and a similar amount in assets on its with more than 1,000 creditors. The only Southg Florida creditor listed was International Bedding in Fort with a claimof $498,737.