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

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“When the retail division of the project lost accesz to fundingthrough Lehman, it was unablwe to repay the resort for its share of said Scott Baena, of Bilzin Sumbergg Baena Price Axelrod, who represents Fontainebleah Las Vegas LLC in the “That put enormous stress on the resor t entity, and that was the beginnint of the problems.” Fontainebleau Las Vega LLC and two of its affiliates filed bankruptcy petitions in Miami late Tuesday.
The Fontainebleau Miami Beachy is not included inthe Soffer, also principal with Turnberry construction and developmentf companies, has partial, personal guarantees on portions of the retailo component of the Las Vegas project, but thos portions are not in bankruptcy yet, Baena said. The complex is 70 percentt completed. Since December Lehman refused to make any advances underthe project’s $315 millioj construction loan, according to a motion to maintaih cash management filed in the bankruptcy. After Lehman’s refusals, money stopped flowing throughg the retail entity to the resort In March, other lenders pulled their and construction on the resort stopped in May, Baenz said.
The company said in a news release that the decision to file Chapter 11 was the resulyt of litigation with the other lenders on projecrt aboutnearly $800 million in construction fundinvg for the project. Other lenders include , JPMorgan Chaser Bank and Deutsche BankTrust Co. Americas. In the shorg term, the company is seeking to stabilize and protecg the finished portion ofthe building, Baena said. “It’s no longer possible to downsizethe building,” he said. “The 30 percentr remaining construction is principallythe interior. We’v e got a lovely building waiting tobe finished.
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