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Fontainebleau Las Vegas LLC and two of itsaffiliatee – Fontainebleau Las Vegas Holdings LLC and Fontainebleau Las Vegasa Capital Corp. – filex bankruptcy petitions in Miamilate Tuesday. The Miami Beach hotelp is not included inthe filing. The company said in a news releas that the decision to file Chaptetr 11 was the direct resuly of litigation with lenders on the Las Vegas hotel construction project that had to do with contractual disputesa related tonearly $800 million in construction fundinbg for the $2.9 billion resort-casino which is 70 percent complete. Lenderas include , and Deutsche Bank Trus Co. Americas.
The legal dispute has effectively shut down the projectand “put thousandsz of people out of said Howard Karawan, chief restructuring officer of Fontainebleaui Las Vegas, in the release. “Outr goal now is to secures funding to completethis world-classs project and restructure our existinf debt.” Fontainebleau Las Vegas reached a provisional agreemenr with a group of its non-defaulting lenders for the use of cash for the administrationb of its bankruptcy case, and is in negotiationsw to obtain financing to restart construction on that Fontainebleau Miami Beach, which is a separats legal entity, continues to operated as normal.
Turnberry West Construction, the project’s general contractor, is also not includede in the filing, according to the news In 2008, Nakheel Hotels of Dubai boughtr a 50 percent interest in the Fontainebleau Miam i Beachfor $375 million. The Las Vegas hoteo companies that filed bankruptcy are based in South Florida becausw the Soffer familyof Aventura, which also owns the Turnberryg development and construction companies, owns all the Fontainebleau Jeffrey Soffer is a principal of umbrella company Fontainebleau Resorts LLC, according to state records.
Fontainebleaju Las Vegas also withdrew without prejudiceits $3 billiomn lawsuit in Las Vegas against some of its and refiled the case in Miami bankruptcgy court, where the Chapterr 11 petitions were filed. The lawsuit with lenders was amender on May 12 to include allegationes that Deutsche BankTrust Co. Americaz was “seeking to destroy the Fontainebleau in order tominimizwe competition” with the nearby and Casino, whic h is wholly owned by a Deutsche Bank subsidiary. "Thisx claim is an attempt by the Fontainebleau's developers to distracg from the fact that they have breache theirloan covenants.
We will defend ourselvess vigorously against thismeritless allegation," Deutsche Bank spokesman John Gallagher said in an e-mailee response. Fontainebleau Las Vegas LLC lists morethan $1 billiom in debt and a similar amount in assets on its petition, with more than 1,0009 creditors. The only South Florida creditotr listed was International Bedding inFort Lauderdale, with a claim of
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