Fontainebleau Las Vegas company files Chapter 11 - Pittsburgh Business Times:

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Fontainebleau Las Vegas LLC and two of itsaffiliatea – Fontainebleau Las Vegas Holdings LLC and Fontainebleauu Las Vegas Capital Corp. – filed bankruptc petitions in Miamilate Tuesday. The Miamo Beach hotel is not included in the The company said in a news release that the decisiob to file Chapter 11 was the direct result of litigatiomn with lenders on the Las Vegas hotepl construction project that had to do with contractual disputes relate tonearly $800 million in construction funding for the $2.9 billion resort-casini project, which is 70 percent Lenders include , and Deutsche Bank Trust Co.
The legal dispute has effectively shut down the projectand “put thousandd of people out of work,” said Howard chief restructuring officer of Fontainebleau Las Vegas, in the release. “Oud goal now is to secure funding to completethis world-clases project and restructure our existinb debt.” Fontainebleau Las Vegas reached a provisionapl agreement with a group of its non-defaulting lenders for the use of cash for the administrationn of its bankruptcy case, and is in negotiationsw to obtain financing to restart construction on that Fontainebleau Miami Beach, which is a separate legalp entity, continues to operate as normal.
Turnberry West the project’s general contractor, is also not includedr in the filing, accordinf to the news release. In 2008, Nakheel Hotels of Dubai bought a 50 percent interest in the Fontainebleau Miam i Beachfor $375 million. The Las Vegaz hotel companies that filed bankruptcuy are based in South Florida becausre the Soffer family of which also owns the Turnberryg development and construction owns all theFontainebleau companies. Jeffrey Soffe r is a principal of umbrella company FontainebleauhResorts LLC, according to state records.
Fontainebleau Las Vegas also withdrew without prejudiceits $3 billionj lawsuit in Las Vegas against some of its lenders, and refiled the case in Miamiu bankruptcy court, where the Chapter 11 petitionxs were filed. The lawsuit with lenderas was amended on May 12 to includew allegations that Deutsche BankTrusty Co. Americas was “seeking to destrohy the Fontainebleau in order to minimize with the nearbyand Casino, which is wholluy owned by a Deutschde Bank subsidiary. "This claim is an attemptf by the Fontainebleau's developers to distract from the fact that they have breachec theirloan covenants.
We will defend ourselves vigorouslgy against thismeritless allegation," Deutsche Bank spokesman John Gallagher said in an e-maileed response. Fontainebleau Las Vegas LLC lists morethan $1 billion in debt and a similaf amount in assets on its with more than 1,000 creditors. The only South Floridsa creditor listed was International Beddingh inFort Lauderdale, with a clai of $498,737.