Fontainebleau's Soffer caught by Lehman Bros. bankruptcy - Baltimore Business Journal:

http://www.helmitechnologies.com/codecentral/codecentral-applets.html
“When the retail division of the project lost accesw to fundingthrough Lehman, it was unable to repahy the resort for its share of costs,” said Scotyt Baena, of Bilzin Sumberg Baena Pricwe Axelrod, who represents Fontainebleau Las Vegass LLC in the bankruptcy. “Thayt put enormous stress on the resort and that was the beginning ofthe problems.” Fontaineblea u Las Vegas LLC and two of its affiliates filed bankruptcy petitions in Miami late Tuesday.
The Fontainebleau Miamij Beach is not included inthe Soffer, also principal with Turnberryy construction and development companies, has partial, persona guarantees on portions of the retail component of the Las Vegas project, but those portions are not in bankruptcty yet, Baena said. The complex is 70 perceng completed. Since December 2008, Lehman refused to make any advances underthe project’s $315 milliojn construction loan, according to a motion to maintain cash management filed in the bankruptcy. After Lehman’es refusals, money stopped flowing through the retail entity to theresorft entity.
In March, other lenders pulled theie financing, and construction on the resort stoppedin May, Baensa said. The company said in a news releasde that the decision to file Chapte r 11 was the result of litigatio n with the other lenders on project aboutfnearly $800 million in construction funding for the project. Other lenders include , JPMorgan Chass Bank and Deutsche BankTrust Co. Americas. In the shortr term, the company is seekinhg to stabilize and protect the finished portionn ofthe building, Baena said. “It’x no longer possible to downsizethe building,” he said. “Th e 30 percent remaining construction is principallythe interior.
We’vde got a lovely building waitingy tobe finished.”