Las Vegas Casino Files for Bankruptcy

More bad news out of Las Vegas: the Fontainebleau Las Vegas has filed for bankruptcy.

The 3,900-room, $2.9 billion casino resort, which was set to open in October, failed to obtain about $800 million in construction funding from lenders. It had been trying to get this pre-arranged funding since it filed a $3 billion lawsuit in April against 11 lenders including Bank of America and JP Morgan Chase Bank.

The lawsuit has been withdrawn in Las Vegas and moved to the U.S. Bankruptcy Court in the Southern District of Florida, Miami.

Despite filing for Chapter 11, bankruptcy counsel
Scott Baena of Bilzin Sumberg said in a statement, "Fontainebleau Las Vegas will continue to aggressively prosecute claims against these lenders for failing to honor their contractual commitments."

The Fontainebleau Las Vegas was expected to open with 6,000 employees.
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