Anchored by a 63-story hotel tower, the 3.4-million-square-foot,$3-billion project at the north end of the Las Vegas Strip stalledat 70% completion after revolver lenders, who had agreed to providefinal-stage financing for the project, nixed the deal this spring,claiming Fontainebleau Las Vegas LLC had defaulted on its creditagreement. The parties are in mandatory mediation related to thelawsuit filed by Fontainebleau against the final-stage lendersconcurrent with the bankruptcy court proceedings.

Anchored by a 63-story hotel tower, the stalled3.4-million-square-foot project sits 70% complete at the north endof the Las Vegas Strip. The developers, first mortgage lenders andothers have invested more than $2 billion of debt and equity in theproject to date.

The developer states in Monday's filing that it has been"intensely focused on forging a transaction to facilitatecompletion of the project independent of resolution of the revolverlitigation" since a district court judge in late August denied its request forsummary judgment against the revolver lenders, making it"less likely that the mediation process will result in a globalresolution," states the filing.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.