$3.9bn Las Vegas Casino Project Goes Bankrupt

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Created on Friday, 12 June 2009 11:29

$3.9bn Las Vegas Casino Project Goes Belly Up

Fontaine­bleau, which is building ,or was building should we say, a mega gambling palace in Las Vegas has filed for bankruptcy and work has ground to a halt.

The $3.9bn (£2.3bn) project was shaping up to be one of the resorts resorts in the desert city, with 3800 rooms, 27 bars, several swimming pools, business meeting spaces and over 1500 slots. But, the cash has dried up and the group is now locked in a bitter legal dispute with investors.

The parent company has accused some of the project’s backers of reneging on a promise to commit extra funding. Fontainebleau pointed the finger at Deutsche Bank for not releasing an additional $800m (£488m), which they speculate is to protect the Cosmopolitan Resort down the road which is owned by a subsidiary of the German bank.

"It is not good that our partners have forced us down this road," said Fontainebleau's chief officer, Howard Karawan.

"By going back on their credit facility, they have basically pulled the plug on the project and put hundreds of workers on the dole."

Deutsche denies the allegations of course and said "we´ll see you in court busters", or words to that effect.