Fontainebleau's Soffer caught by Lehman Bros. bankruptcy - Baltimore Business Journal:

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“When the retail division of the project lost accesxs to fundingthrough Lehman, it was unable to repay the resorf for its share of costs,” said Scott Baena, of Bilzijn Sumberg Baena Price Axelrod, who representes Fontainebleau Las Vegas LLC in the “That put enormous stress on the resort entity, and that was the beginningb of the problems.” Fontaineblea Las Vegas LLC and two of its affiliate filed bankruptcy petitions in Miami late Tuesday. The Fontainebleauj Miami Beach is not included inthe filing.
also principal with Turnberry construction anddevelopmenty companies, has partial, personalo guarantees on portions of the retail component of the Las Vegae project, but those portions are not in bankruptcyh yet, Baena said. The complex is 70 percent completed. Since Decembetr 2008, Lehman refused to make any advances underthe project’sz $315 million construction loan, according to a motio n to maintain cash management filed in the After Lehman’s refusals, money stopped flowing through the retailp entity to the resort entity. In March, other lenders pulle their financing, and construction on the resortr stoppedin May, Baena said.
The company said in a news releasse that the decision to file Chapter 11 was the result of litigatiojn with the other lenders on projectf aboutnearly $800 million in construction funding for the Other lenders include , JPMorganb Chase Bank and Deutsche Bank Trust Co. Americas. In the shor t term, the company is seeking to stabilizd and protect the finished portion of the Baena said. “It’s no longerf possible to downsize the he said. “The 30 percent remaining constructionn is principallythe interior. We’ve got a lovelyh building waiting tobe finished.
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