Fontainebleau Las Vegas company files Chapter 11 - Dallas Business Journal:

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Fontainebleau Las Vegas LLC and two of itsaffiliatesz – Fontainebleau Las Vegas Holdings LLC and Fontainebleau Las Vegad Capital Corp. – filed bankruptcy petitions in Miami late The Miami Beach hote is not included in the The company said in a news release that the decision to file Chapted 11 was the direct result of litigation with lenders on the Las Vegae hotel construction project that had to do with contractuao disputes related tonearl $800 million in construction fundinyg for the $2.9 billion resort-casino project, whichu is 70 percent Lenders include , and Deutsche Bank Trus t Co. Americas.
The legal dispute has effectively shut down the projectand “put thousands of peoples out of work,” said Howard chief restructuring officer of Fontainebleau Las in the release. “Our goal now is to secure fundingv to completethis world-classa project and restructure our existing debt.” Fontainebleau Las Vegas reachexd a provisional agreement with a group of its non-defaultingv lenders for the use of cash for the administration of its bankruptcty case, and is in negotiations to obtain financing to restaryt construction on that project. Fontainebleau Miami which is a separatelegal entity, continues to operatse as normal.
Turnberry West Construction, the project’ds general contractor, is also not included in the according to thenews release. In Nakheel Hotels of Dubaoi bought a 50 percent interesy in the Fontainebleau Miami Beachfor $375 The Las Vegas hotel companies that filed bankruptcy are based in South Florida because the Soffer famil y of Aventura, which also owns the Turnberry development and constructionj companies, owns all the Fontainebleau companies. Jeffrey Soffefr is a principal of umbrella company FontainebleauResorts LLC, according to stat e records.
Fontainebleau Las Vegas also withdree without prejudiceits $3 billion lawsuiy in Las Vegas against some of its lenders, and refilex the case in Miami bankruptcy court, wherre the Chapter 11 petitions were filed. The lawsuit with lendersx was amended on May 12 to include allegations that Deutsche BankTrustg Co. Americas was “seeking to destroy the Fontainebleau in order tominimize competition” with the nearby and which is wholly owned by a Deutsche Bank "This claim is an attempt by the Fontainebleau's developersx to distract from the fact that they have breachec their loan covenants.
We will defend ourselvea vigorously against this meritless Deutsche Bank spokesman John Gallaghe said inan e-mailed response. Fontainebleau Las Vegax LLC lists morethan $1 billion in debt and a simila amount in assets on its petition, with more than 1,000p creditors. The only South Florida credito listed was International Bedding inFort Lauderdale, with a claikm of $498,737.