Judge Orders Remedy For Fontainebleau Lienholders

Law360, New York (July 19, 2010, 4:47 PM EDT) -- A federal judge has ruled that a bankruptcy court improperly allowed failed casino developer Fontainebleau Las Vegas Holdings LLC to use cash collateral over the objections of creditors with liens on that collateral, and ordered the bankruptcy court to fashion a remedy for those creditors.

Judge Cecilia M. Altonaga of the U.S. District Court for the Southern District of Florida also ruled July 14 that the U.S. bankruptcy court in that district shouldn't have granted lenders including Icahn Nevada Gaming Acquisition LLC — which provided debtor-in-possession...
To view the full article, register now.