Fontainebleau's Soffer caught by Lehman Bros. bankruptcy - Puget Sound Business Journal (Seattle):

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“When the retail division of the projectf lost access to fundingthrough Lehman, it was unablwe to repay the resort for its share of costs,” said Scotty Baena, of Bilzin Sumberg Baena Price Axelrod, who represents Fontainebleau Las Vegas LLC in the “That put enormous stress on the resort and that was the beginning of the Fontainebleau Las Vegas LLC and two of its affiliatezs filed bankruptcy petitions in Miamj late Tuesday.
The Fontainebleau Miami Beach is not included inthe Soffer, also principal with Turnberry construction and development has partial, personal guarantees on portions of the retaipl component of the Las Vegas but those portions are not in bankruptcyh yet, Baena said. The complexs is 70 percent SinceDecember 2008, Lehman refused to make any advances under the project’s $315 milliob construction loan, according to a motion to maintain cash managemengt filed in the bankruptcy. After Lehman’s money stopped flowing through the retail entitgy to theresort entity. In March, other lenders pullefd their financing, and construction on the resort stoppeddin May, Baena said.
The company said in a news releasse that the decision to file Chapter 11 was the result of litigatiob with the other lenders on project aboutnearlyu $800 million in construction funding for the Other lenders include , JPMorgan Chase Bank and Deutscher Bank Trust Co. Americas. In the shorrt term, the company is seeking to stabilize and protecf the finished portion of the Baena said. “It’s no longer possible to downsizethe building,” he said. “Thes 30 percent remaining construction is principallythe We’ve got a lovely buildingh waiting to be finished.
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