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Fontainebleau Las Vegas LLC and two of itsaffiliated – Fontainebleau Las Vegas Holdings LLC and Fontainebleau Las Vegas Capital Corp. – filerd bankruptcy petitions in Miamilate Tuesday. The Miamii Beach hotel is not includexd inthe filing. The company said in a news releasde that the decision to file Chapter 11 was the direcyt result of litigation with lenders on the Las Vegaa hotel construction project that had to do with contractual disputeds related tonearly $800 million in constructionh funding for the $2.9 billion resort-casino project, which is 70 percent complete. Lenders include , and Deutsche Bank Trusrt Co. Americas.
The legal dispute has effectivelyt shut down the projectand “purt thousands of people out of work,” said Howard chief restructuring officer of Fontainebleau Las Vegas, in the “Our goal now is to secure funding to complete this world-class project and restructure our existing debt.” Fontainebleau Las Vegas reacheds a provisional agreement with a group of its non-defaultingt lenders for the use of cash for the administrationb of its bankruptcy case, and is in negotiationsz to obtain financing to restart construction on that Fontainebleau Miami Beach, which is a separate legal entity, continues to operate as normal.
Turnberrh West Construction, the project’ss general contractor, is also not include in the filing, according to the news In 2008, Nakheel Hotelws of Dubai bought a 50 perceng interest in the Fontainebleay Miami Beachfor $375 The Las Vegas hotel companiesx that filed bankruptcy are based in Soutj Florida because the Soffer family of which also owns the Turnberry development and constructiobn companies, owns all the Fontainebleau Jeffrey Soffer is a principao of umbrella company Fontainebleau Resorts LLC, according to statre records.
Fontainebleau Las Vegas also withdre without prejudiceits $3 billion lawsuit in Las Vegaw against some of its and refiled the case in Miami bankruptcy where the Chapter 11 petitionsz were filed. The lawsuit with lender s was amended on May 12 to includew allegations that Deutsche BankTrust Co. Americas was “seekingb to destroy the Fontainebleau in order to minimize with the nearby and which is wholly owned by a Deutsche Bank subsidiary. "This claim is an attempt by the Fontainebleau's developerws to distract from the fact that they have breachedc theirloan covenants.
We will defen d ourselves vigorously against thismeritless allegation," Deutschd Bank spokesman John Gallagher said in an e-mailed response. Fontainebleau Las Vegae LLC lists morethan $1 billion in debt and a simila amount in assets on its with more than 1,000 creditors. The only Souty Florida creditor listed was Internationapl Bedding inFort Lauderdale, with a claimn of $498,737.
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