June 12, 2009
Las Vegas casino developers suing lender group
Casino-resort developer Fontainebleau Las Vegas LLC says it has filed for Chapter 11 bankruptcy protection after failing to get certain lenders to provide about US$800 million in construction funding to complete the company’s $2.9 billion property on the Las Vegas Strip.
Fontainebleau Las Vegas had filed a $3 billion lawsuit in April against Bank of America, JPMorgan Chase Bank, Deutsche Bank Trust Company Americas and eight other lenders in an effort to access the prearranged financing to pay its 3,000 construction workers and finish the project, which is 70 percent complete and had eyed an October opening.
The complaint alleged that the lenders terminated their agreement to provide an $800 million revolving loan due to one or more unspecified “events of default” by Fontainebleau. But the developers said they didn’t default on any part of their agreement. Bank of America spokeswoman Shirley Norton told The Associated Press in April that the bank was discussing “restructured financing” with the company.
The lawsuit was amended last month to charge that one of the lenders, Deutsche Bank, purposely interfered with contracts because the bank owns a rival resort also being built on the Strip, which is projected to open in 2010. The company is demanding additional damages from the bank.
|MOST POPULAR STORIES|
|TODAY’S TOP CONSTRUCTION PROJECTS|
These projects have been selected from 481 projects with a total value of $2,274,238,471 that Reed Construction Data Building Reports reported on Wednesday.
$150,000,000 Ottawa ON Negotiated
$135,000,000 Toronto ON Tenders
$82,000,000 Toronto ON Tenders
- Upset waters over new Ontario diving regulations
- Covering up the Celsius
- Frontier Oilsands Mine joint review panel raises concerns among some First Nations
- The rise of biomaterials in construction
- Doors open on latest PPP Canada funding
- U.S. builders’ confidence rises but is limited by tight credit and shortages of labour and lots
- Keystone XL opponents carve message
- RFP released to shortlisted teams for Milton hospital expansion
- Journal of Commerce Preview for the week of April 21st, 2014
- Fort McMurray airport terminal getting ready for take off
- B.C. government forms liquefied natural gas working group
- Kitimat residents vote against Northern Gateway pipeline
- Precast concrete enables net-zero homes
- Learning to dig safely can save lives
- Ex construction boss admits to collusion in government contracts
- P3 Fund launches
- Supreme court won't hear case involving construction mogul
- Minister spurns spat over plant