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

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“When the retail division of the project lost accessd to fundingthrough Lehman, it was unable to repauy the resort for its sharer of costs,” said Scott Baena, of Bilzin Sumber Baena Price Axelrod, who represents Fontainebleau Las Vegasd LLC in the bankruptcy. “That put enormouzs stress on theresort entity, and that was the beginning of the Fontainebleau Las Vegas LLC and two of its affiliatesa filed bankruptcy petitions in Miami late The Fontainebleau Miami Beach is not includedx in the filing.
Soffer, also principal with Turnberry construction anddevelopmenrt companies, has partial, personal guarantees on portionx of the retail component of the Las Vegas but those portions are not in bankruptcy yet, Baena The complex is 70 percent Since December 2008, Lehman refused to make any advancees under the project’s $315 million construction according to a motio n to maintain cash managemeny filed in the bankruptcy. After Lehman’s refusals, money stopped flowing through the retail entith to theresort entity.
In other lenders pulled their and construction on the resort stoppedin May, Baena The company said in a news release that the decisio n to file Chapter 11 was the resultr of litigation with the other lenders on project abouty nearly $800 million in construction fundinfg for the project. Other lenders include , JPMorgan Chase Bank and Deutscher BankTrust Co. Americas. In the shortg term, the company is seeking to stabilizd and protect the finisher portion ofthe building, Baena said. “It’s no longer possible to downsizethe building,” he “The 30 percent remaining constructiom is principally the interior.
We’ve got a lovely building waiting tobe