Fontainebleau Files for Chapter 11
Fontainbleau filed for voluntary chapter 11 bankruptcy protection yesterday. Construction has been marred by financial problems for the past couple of months and this continues the Las Vegas projects regression to completion.
“The decision to file for Chapter 11 was the direct result of certain lenders having refused to honor their contractual commitments to provide nearly $800 million in construction funding for the $2.9 billion resort-casino project, which is 70 percent complete,” the company said.
“It is unfortunate that our lenders forced us to take this step. By reneging on the revolving credit facility, they effectively shut down the project and put thousands of people out of work,” said Howard Karawan, chief restructuring officer of Fontainebleau Las Vegas. “Our goal now is to secure funding to complete this world-class project and restructure our existing debt.”
I still think that this doesn’t mean that the casino hotel won’t be completed…some day. Obviously things will continue to be delayed, but I can’t imagine that a business this close to completion won’t open. We’ll just have to wait a little while.
Construction photo below from the awesome website Vegas Today and Tomorrow.