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Lenders Demand Fontainebleau Ch. 7 Amid Work Halt

Law360, New York (September 30, 2009) -- Term lenders to bankrupt resort developer Fontainebleau Las Vegas LLC have asked for the $3 billion project to be liquidated because there has been no progress on construction at the site since the developer filed for bankruptcy protection in June.

In a motion filed Friday in the U.S. Bankruptcy Court for the Southern District of Florida, the term lender steering group said that under normal circumstances they would be able...

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