July 8, 2009

Fontainebleau Vegas cash woes detailed

Bankruptcy court documents say it will take another $1.5 billion to complete construction of the Fontainebleau Las Vegas hotel and casino.

The debt load of the ambitious Strip project is estimated to be about twice what the entire project is worth, an appraisal filed with the bankruptcy court in Miami by Bank of America said.

The appraisal concluded that the project has been insolvent since March and that the developer's requests for additional funding were materially inaccurate because they failed to disclose the growing difficulties, The Miami Herald said Wednesday.

The Las Vegas project was meant to be a first step toward developing the Miami-based Fontainebleau brand worldwide; however construction ground to a halt as the recession and accompanying credit crunch settled in.

The famed Fontainebleau Hotel in Miami is not affected by the Las Vegas bankruptcy, the Herald said.