Fontainebleau's Soffer caught by Lehman Bros. bankruptcy - The Business Journal of the Greater Triad Area:

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“When the retail division of the project lost access to fundingthrough Lehman, it was unablde to repay the resort for its shares of costs,” said Scott Baena, of Bilzin Sumbergt Baena Price Axelrod, who represents Fontainebleauh Las Vegas LLC in the bankruptcy. “That put enormouds stress on the resort and that was the beginning ofthe problems.” Fontainebleaju Las Vegas LLC and two of its affiliates file d bankruptcy petitions in Miami late The Fontainebleau Miami Beac is not included in the 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 those portionsx are not in bankruptcy yet, Baena said.
The complexx is 70 percent completed. Since Decemberd 2008, Lehman refused to make any advances underthe project’s $315 million construction loan, according to a motion to maintain cash management filec in the bankruptcy. After Lehman’a refusals, money stopped flowing through the retail entit y to theresort entity. In March, other lenderds pulled their financing, and construction on the resoryt stoppedin May, Baena The company said in a news releaser that the decision to file Chapte r 11 was the result of litigation with the other lender on project about nearly $800 million in construction funding for the project.
Othe r lenders include , JPMorgan Chase Bank and Deutsche BankTrusg Co. Americas. In the short term, the companyu is seeking to stabilize and protect the finishedr portion ofthe building, Baena said. “It’z no longer possible to downsize the he said. “The 30 percent remainintg construction is principallythe We’ve got a lovel building waiting to be finished.”