Fontainebleau's Soffer caught by Lehman Bros. bankruptcy - Business Courier of Cincinnati:

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“When the retail division of the project lost accesds to fundingthrough Lehman, it was unablr to repay the resort for its share of said Scott Baena, of Bilzin Sumberg Baenwa Price Axelrod, who represents Fontainebleauu Las Vegas LLC in the bankruptcy. “Thayt put enormous stress on theresort entity, and that was the beginningy of the problems.” Fontainebleau Las Vegaxs LLC and two of its affiliates filed bankruptcy petitions in Miami late Tuesday. The Fontainebleaiu Miami Beach is not included inthe filing.
Soffer, also principao with Turnberry construction and development has partial, personal guarantees on portionse of the retail component of the Las Vegasd project, but those portions are not in bankruptcy yet, Baena said. The complex is 70 percent SinceDecember 2008, Lehman refuses to make any advances underd the project’s $315 million constructiobn loan, according to a motioj to maintain cash management filed in the After Lehman’s refusals, money stopped flowing througn the retail entity to the resort entity. In other lenders pulled their financing, and constructionj on the resort stoppedin May, Baen said.
The company said in a news release that the decision to file Chapter 11 was the resul of litigation with the other lenders on projecrt aboutnearly $800 million in construction funding for the project. Otherr lenders include , JPMorgan Chasd Bank and Deutsche BankTrust Co. Americas. In the shor t term, the company is seeking to stabilizd and protect the finished portion ofthe building, Baena said. “It’se no longer possible to downsizethe building,” he said. “The 30 percen t remaining construction is principallythe interior. We’ver got a lovely building waiting tobe finished.
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