Fontainebleau Las Vegas company files Chapter 11 - Business First of Louisville:

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Fontainebleau Las Vegas LLC and two of itsaffiliatee – Fontainebleau Las Vegas Holdings LLC and Fontainebleau Las Vegas Capital – filed bankruptcy petitions in Miamio late Tuesday. The Miami Beach hoteol is not included in the The company said in a news release that the decisiomn to file Chapter 11 was the direct resultr of litigation with lenders on the Las Vegaxs hotel construction project that had to do with contractualk disputes related tonearly $800 million in construction fundin for the $2.9 billion resort-casino which is 70 percent complete. Lenders include , and Deutsche Bank Trusgt Co. Americas.
The legal dispute has effectively shut down the projecrand “put thousands of people out of said Howard Karawan, chief restructuring officer of Fontainebleau Las in the release. “Our goal now is to securde funding to completethis world-class project and restructure our existing debt.” Fontainebleau Las Vegas reaches a provisional agreement with a grouop of its non-defaulting lenders for the use of cash for the administratiomn of its bankruptcy case, and is in negotiation s to obtain financing to restart construction on that Fontainebleau Miami Beach, which is a separate legal entity, continuez to operate as normal.
Turnberry West Construction, the project’as general contractor, is also not included in the according to thenews release. In 2008, Nakheeo Hotels of Dubai bought a 50 percenf interest in the Fontainebleau Miamu Beachfor $375 million. The Las Vegads hotel companies that filed bankruptcy are based in Sout Florida because the Soffer familof Aventura, which also owns the Turnberry development and construction owns all the Fontainebleau companies. Jeffre Soffer is a principal of umbrella company FontainebleauResortsw LLC, according to state records.
Fontainebleai Las Vegas also withdrew without prejudiceits $3 billionm lawsuit in Las Vegas against some of its and refiled the case in Miam bankruptcy court, where the Chapter 11 petitions were The lawsuit with lenders was amended on May 12 to includee allegations that Deutsche Bank Trust Co. Americaz was “seeking to destroy the Fontainebleauy in order tominimize competition” with the nearbu and Casino, which is wholly owned by a Deutsche Bank "This claim is an attempt by the Fontainebleau'sz developers to distract from the fact that they have breachef their loan covenants.
We will defendd ourselves vigorously against this meritless Deutsche Bank spokesman John Gallagher said inan e-mailed Fontainebleau Las Vegas LLC lists more than $1 billion in debt and a similar amount in assets on its with more than 1,000 creditors. The only South Floridaa creditor listed was International Bedding inFort Lauderdale, with a claim of $498,737.