Fontainebleau's Soffer caught by Lehman Bros. bankruptcy - Silicon Valley / San Jose Business Journal:

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“When the retail division of the project lost accesw to funding through it was unable to repagy the resort for its share of saidScott Baena, of Bilzin Sumberg Baens Price Axelrod, who represents Fontainebleau Las Vegas LLC in the “That put enormous stress on the resort entity, and that was the beginniny of the problems.” Fontainebleaju Las Vegas LLC and two of its affiliates filedf bankruptcy petitions in Miami late The Fontainebleau Miami Beac h is not included in the Soffer, also principal with Turnberry construction and developmentf companies, has partial, personal guaranteea on portions of the retail component of the Las Vegasd project, but those portions are not in bankruptcy yet, Baena said.
The complex is 70 percent SinceDecember 2008, Lehman refused to make any advancesd under the project’s $315 million construction loan, accordintg to a motion to maintainm cash management filed in the bankruptcy. Aftee Lehman’s refusals, money stopped flowing through the retaill entity to the resort In March, other lenders pulled their financing, and construction on the resortt stopped in May, Baena The company said in a news release that the decision to file Chapter 11 was the result of litigation with the othet lenders on project about nearly $800 million in construction funding for the project. Othe r lenders include , JPMorgan Chase Bank and Deutsche BankTrustf Co.
Americas. In the shorg term, the company is seeking to stabiliz and protect the finished portion of the Baena said. “It’s no longer possible to downsize the he said. “The 30 percent remaining constructiomn is principallythe interior. We’ve got a lovely building waiting tobe finished.”