Las Vegas Casino developer in talks with banks over finance
Posted by Gavin Smith on 30 Apr 2009 at 13:04
The company building a $3 billion ($2 billion) casino resort in Las Vegas and which started legal action against its lenders is now in talks with at least one of the banks about restructured financing, according to reports.
Associated Press (AP) said Bank of America spokeswoman Shirley Norton told the agency it was discussing "restructured financing" with Fontainebleau Las Vegas.
AP also said Fontainebleau started legal action after claiming Bank of America and 10 others went back on $800 million in funding, claiming the company had defaulted when it hadn't.
The company has said it must have the cash in order to finish a 3,800 room hotel and pay bills. Almost three-quarters finished, the hotel resort is expected to open in October.
Quoted by Associated Press, Fontainebleau spokesman Dave Satterfield said the talks were "constructive" but the firm's views had not changed.
According to the news agency's report, Mr Satterfield said the firm expects all lenders to "abide by their contractual committment", and added the finalisation of the project was "in everyone's interest".
The lawsuit says both Bank of America and Merrill Lynch Capital Corp each promised $100 million to Fontainebleau.
Associated Press also listed other companies mentioned in the lawsuit, including Barclays Bank PLC, Royal Bank of Scotland PLC, HSH Nordbank AG, MB Financial Bank, N.A, Camulos Master Fund LP and Sumitomo Mitsui Banking Corporation New York.
According to reports Fontainebleau has already borrowed over $2 billion and says the lawsuit and loan does no impact on its Fontainebleau Miami Beach property.
