Fontainebleau Las Vegas dries up

Bruce Watson

On Tuesday, the Fontainebleau Las Vegas filed for Chapter 11 bankruptcy. The 3,900-unit condo/hotel, which is an estimated 70 percent completed, was unable to secure financing to finish construction.

The immediate cause of the Fontainebleau's woes is its financiers. In April, the company filed suit against JP Morgan Chase, Bank of America, Deutsche Bank, Goldman Sachs, UBS, Wells-Fargo and five other lenders. According to Fontainebleau Las Vegas LLC, the owners of the project, the eleven lenders had promised $800 million in revolving credit, but were reneging on the deal.