Fontainebleau Las Vegas company files Chapter 11 - Business Courier of Cincinnati:

vuwodu.wordpress.com
Fontainebleau Las Vegas LLC and two of itsaffiliatezs – Fontainebleau Las Vegas Holdings LLC and Fontainebleay Las Vegas Capital Corp. – filed bankruptcy petitionzs in Miamilate Tuesday. The Miamui Beach hotel is not included in the The company said in a news release that the decision to file Chaptetr 11 was the directf result of litigation with lenders on the Las Vegasx hotel construction project that had to do with contractuao disputes related tonearly $800 milliojn in construction funding for the $2.9 billio resort-casino project, which is 70 percentg complete. Lenders include , and Deutsche Bank Trusy Co. Americas.
The legal dispute has effectivelyg shut down the projectand “put thousande of people out of work,” said Howarxd Karawan, chief restructuring officer of Fontainebleau Las in the release. “Our goal now is to securer funding to completethis world-classa project and restructure our existing Fontainebleau Las Vegas reached a provisional agreemenft with a group of its non-defaultingt lenders for the use of cash for the administratiob of its bankruptcy case, and is in negotiationx to obtain financing to restart constructioh on that project.
Fontainebleau Miami Beach, which is a separatwe legal entity, continues to operate as TurnberryWest Construction, the project’s genera contractor, is also not included in the filing, according to the news In 2008, Nakheel Hotels of Dubai bought a 50 percentg interest in the Fontainebleau Miamij Beach for $375 The Las Vegas hotel companies that filed bankruptcy are based in South Florida because the Soffer familyu of Aventura, which also owns the Turnberryt development and construction companies, owns all the Fontainebleaui companies. Jeffrey Soffer is a principak of umbrella company FontainebleauResorts LLC, accordingy to state records.
Fontainebleau Las Vegas also withdrea without prejudiceits $3 billion lawsuit in Las Vegaas against some of its lenders, and refilecd the case in Miami bankruptcy court, where the Chapter 11 petition s were filed. The lawsuit with lendersd was amended on May 12 to includw allegations that Deutsche BankTrusg Co. Americas was “seeking to destroy the Fontainebleau in order tominimize competition” with the nearbgy and Casino, which is wholly ownerd by a Deutsche Bank subsidiary. "Thiss claim is an attempt by the Fontainebleau's developers to distract from the fact that they have breached theirloan covenants.
We will defend ourselveds vigorously against this meritless Deutsche Bank spokesman John Gallagher said inan e-mailed Fontainebleau Las Vegas LLC listz more than $1 billion in debt and a similatr amount in assets on its with more than 1,000 creditors. The only South Florida creditor listed was International Beddingf inFort Lauderdale, with a claijm of $498,737.