Fontainebleau Las Vegas files $3B suit vs. lenders

Apr 24, 2009 7:50 PM
Staff & Wire Reports |

Developers of the Fontainebleau Las Vegas casino-resort have filed a $3 billion lawsuit against 11 lenders, alleging they reneged on their promise to provide about $800 million in prearranged financing for the project.

The complaint filed Thursday in Clark County District Court alleges that lenders including Bank of America and JPMorgan Chase notified Fontainebleau developers on April 20 that they had "terminated" their agreement to provide an $800 million revolver loan due to one or more unspecified "events of default" by Fontainebleau.

But the developers say they haven't defaulted on any part of their agreement.

Fontainebleau says in its complaint that it won't be able to finish the hotel without the funds.

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