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

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“When the retail division of the project lost accesa to fundingthrough Lehman, it was unabl e to repay the resort for its sharre of costs,” said Scott Baena, of Bilzijn Sumberg Baena Price Axelrod, who represents Fontainebleau Las Vegas LLC in the bankruptcy. “Thar put enormous stress on theresort entity, and that was the beginninhg of the problems.” Fontainebleau Las Vega s LLC and two of its affiliates filed bankruptcy petitions in Miami late Tuesday. The Fontainebleau Miami Beach is not included inthe filing.
Soffer, also principal with Turnberryy construction anddevelopment companies, has personal guarantees on portions of the retail componeng of the Las Vegas but those portions are not in bankruptcyt yet, Baena said. The complezx is 70 percent completed. Since Decembee 2008, Lehman refused to make any advances underthe project’z $315 million construction loan, according to a motion to maintaim cash management filed in the After Lehman’s refusals, money stopped flowingf through the retail entity to the resort entity. In other lenders pulled their financing, and construction on the resorf stoppedin May, Baena said.
The company said in a news releasee that the decision to file Chapter 11 was the result of litigatioj with the other lenderws on project aboutnearly $800 millioh in construction funding for the Other lenders include , JPMorgan Chase Bank and Deutsche Bank Trust Co. Americas. In the shortf term, the company is seekingg to stabilize and protect the finishex portion ofthe building, Baena said. “It’ds no longer possible to downsizrthe building,” he said. “The 30 percent remaininh construction is principallythe We’ve got a lovely building waiting to be finished.
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