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Fontainebleau Saga Reaches Chapter 11

By Chuckmonster on Tuesday, 9th June 2009 8:51pm
  » filed under Las Vegas  comments: 3

   

The page turning saga of Fontainebleau has finally gotten to the juicy part - Chapter 11, "Bankruptcy" - when company spokesman Howard Karawan dropped this bombshell:

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

Our goal now is to secure funding to complete this world-class project and restructure our existing debt.

More from the RJ and LV Sun... for the full background, read the poem.

Thanks G!



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Comments & Discussion:

Anyone else getting the feeling that someone who is looking to get into the Vegas market and has a bankroll that's burning a hole in their pocket may be coming to the aid of the project? At this point, it may take Penn National or Pinnacle coming onboard to get the money to finish the project. By having an gaming company onboard with the project may ease things in regards to licensing.

I was sort of hoping that the hotle would have been finished and open by the time i head to Vegas in the fall. So, you have a hotel that is well past the mid way stage of construction and a few out there who would love to get into the casino business. Someone is going to wander in with some cash and finish the place I hope. Otherwise, that end of the strip is going to look like a scene out of Terminator Salvation

Ordinarily I would say that someone will pony up the money to finish this thing, but I'm not sure any of the usual players have enough cash. It's probably gonna take $1B to finish, $1B to buy it out of bankruptcy, $500M to operate it, and several years of losses before it turns a profit. For that kind of money, you could just buy Mandalay Bay and skip all the headaches.



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