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LAS VEGAS-Fontainebleau Las Vegas LLC filed a $3-billion lawsuit against 11 lenders in Clark County District Court late Thursday, alleging they have reneged on contractual commitments to provide nearly $800 million in revolver financing needed to complete the 3,800-room resort, heretofore on track to open this fall on 24 acres at the north end of the Las Vegas Strip. The developers have already have invested more than $2 billion of debt and equity in the 63-story project.

The revolver lenders notified Fontainebleau developers on April 20 that they had “terminated” their agreement to provide an $800 million revolver loan due to one or more “events of default” that were not specified, according to the complaint filed in Clark County District Court. The developers say they haven’t defaulted on any part of the agreement, and note in their lawsuit that some of the defendants collectively received tens of billions of dollars in federal bailout money meant to increase the flow of credit on top of tens of millions in fees related to their financing commitment.

Fontainebleau Las Vegas is approximately 70% complete and scheduled to open in October. A spokesperson tells GlobeSt.com the developers have $130 million in the bank, which based on the court filing should keep the project on track for the next two or three months. There are currently 3,300 construction workers on the site and an additional 1,700 will be needed to finish the project, to be followed by 6,000 full-time workers once the resort is up and running.

“We are not asking for anything special, merely that the revolver banks fulfill the commitment they made to fund this project,” Fontainebleau Resorts LLC executive chairman Jeff Soffer said in a statement. Fontainebleau’s local attorney Steve Morris wrote in the complaint that the previously committed financing cannot be replaced in today’s economic environment and that without it the project will never be finished. “Construction will cease, contractor liens will accrue and revenues from the project will never be realized,” he wrote.

The lenders named in the lawsuit are Bank of America, JPMorgan Chase, Merrill Lynch Capital Corp., Barclays Bank PLC, Deutsche Bank Trust Company Americas, Royal Bank of Scotland PLC, Sumitomo Mitsui Banking Corporation New York, Bank of Scotland, HSH Nordbank AG, Camulos Master Fund LP and MB Financial Bank NA. The list does not include one revolver lender with a $10 million commitment that is in FDIC receivership and is therefore not part of the suit. The named banks’ counsel hasn’t yet responded to the complaint.

“It is wrong, plain and simple, that the banks named in the lawsuit are trying to back out on their commitment to this important project,” Nevada Senator Harry Reid said in a statement released by his office. “One of the issues I have been working on hardest is freeing the flow of credit for job-creating projects like this one. When banks, especially ones that have received taxpayer dollars, make a commitment to finance a worthy project with thousands of existing jobs on the line, they have an obligation to keep that promise. I hope this can be resolved quickly because thousands of families are counting on it and so is Nevada’s economy.”

The 24.5-acre Fontainebleau project, located across the Strip from Circus Circus, is expected to include nearly 300,000 square feet of retail, a 353,000 square foot convention center, a 60,000-sf spa, a 3,200-seat performing arts theater and a large rooftop pool and club scene. Fontainebleau Las Vegas is represented by Morris Peterson of Las Vegas and Kasowitz, Benson, Torres & Friedman LLP of New York.

Fontainebleau Las Vegas is a joint venture between Las Vegas casino executives and privately held condominium developer Turnberry Associates, which has an adjacent multi-tower residential development. The project financing includes two term loans and the revolver loan. The complaint states that the term lenders have met their obligations. The terms of the loans have not been made public.

“The term banks funded their $1 billion [commitment to Fontainebleau],” Marc Kasowitz told GlobeSt.com sister publication AM Law Litigation Daily . “It’s outrageous that the revolving banks stepped away from their $800 million obligation.

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