BofA talking restructuring with Fontainebleau
LAS VEGAS — Developers of a $3 billion casino resort in Las Vegas who sued their lenders last week are in talks with at least one of the banks about restructured financing.
Bank of America spokeswoman Shirley Norton told The Associated Press on Tuesday that it was discussing “restructured financing” with Fontainebleau Las Vegas. Norton declined to answer further questions.
Fontainebleau said in its lawsuit that BofA and 10 other banks pulled back on $800 million in funding, saying that Fontainebleau had defaulted when it actually had not.
Fontainebleau says it needs the money to finish the 3,800-room hotel and pay contractors. The hotel is about 70 percent finished and was expected to open in October.
Fontainebleau spokesman Dave Satterfield characterized the talks as “constructive conversations.” But he said the developer’s expectations have not changed.
“We expect Bank of America, JPMorgan Chase, Deutsche Bank and all of the other lenders on the revolving credit facility to abide by their contractual commitment and fund the $800 million we need to get this project completed,” Satterfield said. “We’re in the final stages of construction and it’s in everyone’s interest — our lenders, investors, employees, contractors and citizens of Nevada — to complete this project.”
Bank of America and Merrill Lynch Capital Corp. each promised $100 million to Fontainebleau, according to the lawsuit. Bank of America purchased Merrill Lynch in September.
Satterfield said Bank of America also is the administering agent for the loan.
Also named in the lawsuit are Barclays Bank PLC, 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, N.A.
Fontainebleau has already borrowed more than $2 billion. The company has said neither the lawsuit nor the $800 million loan affects its Fontainebleau Miami Beach property.