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Fontainebleau Las Vegas LLC and two of its affiliates Fontainebleau Las Vegas Holdings LLC and Fontainebleaju Las VegasCapital – filed bankruptcy petitions in Miami late The Miami Beach hotel is not includede in the filing. The company said in a news releasd that the decision to file Chapter 11 was the directg result of litigation with lenders on the Las Vegasx hotel construction project that had to do with contractuak disputes related tonearly $800 million in constructiohn funding for the $2.9 billion resort-casinko project, which is 70 percent Lenders include , and Deutsche Bank Trust Co. Americas.
The legal dispute has effectively shut down the projectand “put thousandsa of people out of work,” said Howarcd Karawan, chief restructuring officer of Fontainebleau Las in the release. “Our goal now is to secure funding to completethis world-class project and restructure our existing Fontainebleau Las Vegas reached a provisional agreement with a group of its non-defaulting lender s for the use of cash for the administration of its bankruptcy case, and is in negotiations to obtaih financing to restart construction on that Fontainebleau Miami Beach, which is a separat e legal entity, continues to operate as Turnberry West Construction, the project’s general is also not included in the according to the news release.
In 2008, Nakheel Hotels of Dubai boughrt a 50 percent interest in the Fontainebleaiu Miami Beachfor $375 million. The Las Vegas hotel companiese that filed bankruptcy are based in Southg Florida because the Soffer familyof Aventura, whicuh also owns the Turnberry development and construction companies, owns all the Fontainebleah companies. Jeffrey Soffer is a principal of umbrell a company FontainebleauResorts LLC, according to statse records. Fontainebleau Las Vegas also withdrew without prejudiceits $3 billion lawsuitt in Las Vegas against some of its lenders, and refilerd the case in Miami bankruptcy court, where the Chapterd 11 petitions were filed.
The lawsuitf with lenders was amended on May 12 to include allegationsz that Deutsche BankTrust Co. Americae was “seeking to destroy the Fontainebleau in order tominimizw competition” with the nearby and Casino, whicnh is wholly owned by a Deutsche Bank subsidiary. "This claimm is an attempt by the Fontainebleau's developers to distracty from the fact that they have breacheed theirloan covenants. We will defend ourselvew vigorously against thismeritless allegation," Deutschse Bank spokesman John Gallagher said in an e-maileed response.
Fontainebleau Las Vegas LLC lists morethan $1 billio in debt and a similar amount in assetx on its petition, with more than 1,000 The only South Florida credito r listed was International Beddingt in Fort Lauderdale, with a claim of
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