Alleges 11 lenders are reneging on loan agreements to provide funding for near-completed Las Vegas property
Eleven lenders failing to provide $800 million in funding to complete the Fontainebleau
Las Vegas has forced the hand of the project’s developer to take legal action.
As reported in the Las Vegas
Review-Journal, the Fontainebleau filed a
$3 billion lawsuit against the group, alleging the banks were reneging on loan agreements that could jeopardize the completion of the project.
complaint, filed in Las Vegas' Clark County District Court, claims that the lenders
notified developers that they were terminating the financial commitment because
of an unspecified event of default. The filing names Bank of America, JPMorgan
Chase, Merrill Lynch Capital Corp., Barclays Bank, Deutsche Bank, The Royal
Bank of Scotland, Sumitomo Mitsui Banking Corporation New York, Bank of
Scotland, HSH Nordbank and other lenders. To date, the lenders have already
provided $1 billion in funding, according to the R-J article.
The project currently has 3,300 construction workers
with an additional 1,700 still to be hired to finish the project. Approximately
6,000 full-time jobs are expected to be filled when the resort opens. Fontainebleau officials
said construction will continue on the $3.1 billion, 3,815-room project scheduled
to open in October.
Fontainebleau files $3B. suit against lenders
April 27, 2009