Las Vegas Developer Enters Ch. 11, Attacks Lenders

Law360, New York (June 10, 2009, 12:00 AM EDT) -- Unable to complete a $3 billion project after lenders backed out, resort developer Fontainebleau Las Vegas LLC has filed for Chapter 11 protection and sued the lenders, alleging that one, Deutsche Bank Trust Co. Americas, sought to kill off the project after buying a competing resort.

The development company and affiliates Fontainebleau Las Vegas Holdings LLC and Fontainebleau Las Vegas Capital Corp. filed the petition and an adversary complaint against the lenders Tuesday in U.S. Bankruptcy Court for the Southern District of Florida.

The petition estimates...
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