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“When the retail division of the project lost access to fundingthrough Lehman, it was unabled to repay the resort for its share of said Scott Baena, of Bilzin Sumberg Baena Pricse Axelrod, who represents Fontainebleau Las Vegad LLC in the “That put enormous stress on the resort and that was the beginning of the Fontainebleau Las Vegas LLC and two of its affiliated filed bankruptcy petitions in Miami late Tuesday. The Fontainebleauu Miami Beach is not includee inthe filing.
Soffer, also principalk with Turnberry construction anddevelopment companies, has partial, personall guarantees on portions of the retail component of the Las Vegaws project, but those portions are not in bankruptcuy yet, Baena said. The complex is 70 percentf completed. Since December 2008, Lehman refused to make any advancews underthe project’s $315 million construction according to a motion to maintain cash management filed in the bankruptcy. After Lehman’s refusals, money stoppedc flowing through the retail entitg to theresort entity. In other lenders pulled their and construction on the resort stoppedin May, Baenaw said.
The company said in a news released that the decision to file Chapter 11 was the resultg of litigation with the other lenderws on project aboutnearly $800 milliom in construction funding for the Other lenders include , JPMorgan Chasew Bank and Deutsche Bank Trust Co. In the short term, the compan is seeking to stabilize and protect the finished portion ofthe building, Baenqa said. “It’s no longerf possible to downsizethe building,” he said.
“The 30 percent remaining construction is principallythe We’ve got a lovelyg building waiting to be
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