Fontainebleau Contractors Trump Lenders, Nev. Court Rules

Law360, New York (October 26, 2012, 8:25 PM EDT) -- The Nevada Supreme Court ruled Thursday that contractors with hundreds of millions of dollars in claims against the bankrupt Fontainebleau Las Vegas resort can collect on their debts before a group of lenders, led by Bank of America NA, that loaned the project $2 billion.

In answering two certified questions from a Florida bankruptcy court, the Nevada Supreme Court said that state law prevents lenders who replaced the original lenders from "leapfrogging" over contractors and suppliers who were never paid for their work on the project...
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