Thread: Wheel of misfortune: another Vegas casino goes bust

Wheel of misfortune: another Vegas casino goes bust

Construction work halts at lavish Fontainebleau development amid recriminations over bank funding

* Andrew Clark
* guardian.co.uk, Wednesday 10 June 2009 20.35 BST



The Fontainebleau Las Vegas casino-resort: its developer has filed for bankruptcy protection. Photograph: Ethan Miller/Getty Images

A futuristic $3.9bn casino development on the Las Vegas strip, FontaineÂ*bleau, has declared itself bankrupt and halted construction work in the latest setback forÂ* America's bustling gambling capital.

A lavish, stylish project intended to boast 27 bars, open-air poolside gambling and 1,700 slot machines, Fontainebleau filed for Chapter 11 bankruptcy protection after a bitter legal row with its bankers.

The hotel's Miami-based parent company has accused a group of lenders, including Barclays and Royal Bank of Scotland, of reneging on commitments to provide $800m (£490m) in funding. In court filings, it has singled out Deutsche Bank, accusing it of trying to sabotage Fontainebleau to minimise competition with the nearby Cosmopolitan, which is owned by a Deutsche Bank subsidiary.

"It is unfortunate that our lenders forced us to take this step," said Fontainebleau's chief restructuring officer, Howard Karawan. "By reneging on the revolving credit facility, they effectively shut down the project and put thousands of people out of work."

Deutsche has described these claims as "without merit" and has said it will defend itself vigorously.

Fontainebleau joins several other foundering development projects on the strip: work stopped last year on the $4bn Echelon resort, planned on the site of the venerable Stardust casino, a Vegas landmark that was dynamited in 2007, and the $8bn City Center development had to be bailed out by MGM Mirage in March after a partner failed to provide funds.

http://www.guardian.co.uk/business/2009 ... bankruptcy

Vegas has always been trying to outgrow itself. I personally think they are set up for disaster, especially considering that they now have a HUGE illegal immigrant population, and water is running out.

I took my wife and kid to Vegas 2 years ago and they loved it. I had been about 7 times before and it can be kid friendly as long as you know what you are doing. Here is a pic of my and my daughter in front of the Luxor.

Originally Posted by jshhmr

Vegas has always been trying to outgrow itself. I personally think they are set up for disaster, especially considering that they now have a HUGE illegal immigrant population, and water is running out.

I took my wife and kid to Vegas 2 years ago and they loved it. I had been about 7 times before and it can be kid friendly as long as you know what you are doing. Here is a pic of my and my daughter in front of the Luxor.

Very nice pic Jshmr!! Your daughter is so cute and let me guess.....she's your Princess, isn't she? I recognize that beaming Dad look from pics of my husband and his Princess

Have you had a chance to see Criss Angel at all while there?

azwreath, yes she is my princess. She is so smart. She is going into first grade. I have worked with her at home with reading and math and according to her kindergarten teacher, she is already at a mid-year first grade math and reading level.

I didn't get to see Criss Angel himself, but I did see the production studio. They were asking for people to help Criss with one of his illusions, but it required getting naked for some reason. Needless to say we passed.
I did get to see David Copperfield at Ceasar's Palace back in 1997 and that was an AWESOME show!