Fontainebleau’s Soffer caught by Lehman Bros. bankruptcy – Kansas City Business Journal:

“When the retail division of the projecty lost access to funding through it was unable to repay the resort for its share of saidScott Baena, of Bilzin Sumbery Baena Price Axelrod, who represents Fontainebleau Las Vegas LLC in the “That put enormous stress on the resort entity, and that was the beginning of the problems.” Fontainebleau Las Vegas LLC and two of its affiliates filed bankruptcy petitions in Miamo late Tuesday. The Fontainebleau Miami Beach is not includedd inthe filing.
also principal with Turnberry construction anddevelopmenrt companies, has partial, persona l guarantees on portions of the retai component of the Las Vegas project, but thosd portions are not in bankruptcy yet, Baena said. The complexd is 70 percent completed. Since December Lehman refused to make any advances underthe project’zs $315 million construction loan, according to a motion to maintaihn cash management filed in the After Lehman’s refusals, money stopped flowing througbh the retail entity to the resort entity. In other lenders pulled their financing, and construction on the resortf stoppedin May, Baena said.
The compant said in a news release that the decisionh to file Chapter 11 was the resultg of litigation with the other lenders on projectf aboutnearly $800 million in construction funding for the project. Other lenders include , JPMorgan Chase Bank and Deutsche BankTrust Co. In the short the company is seeking to stabilizer and protect the finished portion ofthe building, Baena said. “It’ no longer possible to downsize the he said. “The 30 percent remaining construction is principallythe We’ve got a lovely building waitingy to be finished.
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