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

younkinesagugad1746.blogspot.com
“When the retail division of the project lost access to fundinfgthrough Lehman, it was unabls to repay the resort for its shared of costs,” said Scott Baena, of Bilzinm Sumberg Baena Price Axelrod, who representzs 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 affiliatese filed bankruptcy petitions in Miami late Tuesday.
The Fontainebleaui Miami Beach is not included inthe Soffer, also principal with Turnberry construction and development has partial, personal guarantees on portions of the retaik component of the Las Vegas but those portions are not in bankruptchy yet, Baena said. The complec is 70 percent completed. Since Decembe r 2008, Lehman refused to make any advances underthe project’s $315 million construction loan, according to a motion to maintaim cash management filed in the bankruptcy. After Lehman’s money stopped flowing through the retail entity to theresorgt entity. In March, other lenders pullex their financing, and construction on the resort stoppeein May, Baena said.
The company said in a news release that the decision to file Chapterr 11 was the result of litigation with the other lenders on projec t aboutnearly $800 million in construction fundintg for the project. Other lenders includse , JPMorgan Chase Bank and Deutsched BankTrust Co. Americas. In the shorr term, the company is seeking to stabilize and protectf the finished portion of the Baena said. “It’s no longer possible to downsizedthe building,” he said.
“The 30 percentg remaining construction is principallythe We’ve got a lovely building waiting to be