Fontainebleau's Soffer caught by Lehman Bros. bankruptcy - Los Angeles Business from bizjournals:

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“When the retail division of the project lost access to fundingthrough Lehman, it was unable to repayg the resort for its sharwe of costs,” said Scott Baena, of Bilzin Sumbert Baena Price Axelrod, who representsa Fontainebleau Las Vegas LLC in the bankruptcy. “That put enormouws stress on theresortt entity, and that was the beginning of the Fontainebleau Las Vegas LLC and two of its affiliates file bankruptcy petitions in Miami late Tuesday.
The Fontainebleauh Miami Beach is not included inthe Soffer, also principal with Turnberrg construction and development companies, has partial, personal guarantee on portions of the retail componenyt of the Las Vegass project, but those portions are not in bankruptcgy yet, Baena said. The complesx is 70 percent completed. Since December 2008, Lehmab refused to make any advances undethe project’s $315 million construction loan, according to a motiob to maintain cash management filed in the After Lehman’s refusals, monehy stopped flowing through the retaipl entity to the resort entity.
In March, other lender pulled their financing, and construction on the resort stoppedin May, Baenaz said. The company said in a news releasd that the decision to file Chapterr 11 was the result of litigation with the other lenderws on project aboutnearly $800 millio in construction funding for the project. Otherr lenders include , JPMorgan Chase Bank and Deutschwe BankTrust Co. Americas. In the shorgt term, the company is seeking to stabiliz e and protect the finished portion ofthe building, Baena “It’s no longer possibls to downsize the building,” he said. “The 30 percent remaining construction is principalltythe interior.
We’ve got a lovelhy building waiting tobe finished.”