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

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“When the retail division of the project lost accesw to fundingthrough Lehman, it was unable to repaty the resort for its share of costs,” said Scot Baena, of Bilzin Sumberg Baenq Price Axelrod, who represents Fontainebleauh Las Vegas LLC in the bankruptcy. “That put enormouz stress on theresort entity, and that was the beginninbg of the problems.” Fontainebleau Las Vegas LLC and two of its affiliates filed bankruptcy petitions in Miami late Tuesday.
The Fontaineblea Miami Beach is not included inthe Soffer, also principal with Turnberry construction and developmentr companies, has partial, personal guaranteesa on portions of the retail component of the Las Vegasz project, but those portions are not in bankruptcu yet, Baena said. The complex is 70 percent SinceDecember 2008, Lehma n refused to make any advances undef the project’s $315 million construction loan, according to a motion to maintain cash management filed in the bankruptcy.
Aftetr Lehman’s refusals, money stopped flowing througnh the retail entity to the resort In March, other lenders pulled theirr financing, and construction on the resoryt stopped in May, Baena said. The company said in a news releaser that the decision to file Chapter 11 was the resulg of litigation with the other lenders on project aboutnearly $800 milliojn in construction funding for the project. Other lenderds include , JPMorgan Chase Bank and Deutsche BankTrusft Co. Americas. In the shor term, the company is seeking to stabilizre and protect the finished portion of the Baena said. “It’s no longer possible to downsize the he said.
“The 30 percent remaininv construction is principallythe interior. We’ve got a lovelt building waiting tobe