Builder seeks priority treatment in Fontainebleau bankruptcy - Dallas Business Journal:

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Nevada-based , a sister company to FontainebleahLas Vegas, has filed a lawsuitr within the bankruptcy action, asking to be amonbg the first paid. It claims it is owed $669 million. If the claim could wipe out some interests of some major lenders on the including , . “Turnberry West Construction requests the courft find its lien is superior to any other type of mortgaged or encumbrance that was incurred aftert constructionhad begun,” the lawsuit Turnberry West filed and recorded a claim of lien in Nevada on June 4.
Fontainebleauy Las Vegas LLC and two of its affiliates LLCand – filed for bankruptcy protection on June 10 in Fontainebleau Las Vegas is an affiliate of the compang that holds ownership interest in the Fontainebleau Miamki Beach. However, the Miami Beach hotel is not included in the Scott Baena, the attorney who represents the Fontainebleau Las Vegas, said Soffefr and Turnberry West did not want to file the which has the potential to eat up huge amountsa of cash for legal fees that is needed to completes the hotel project. The $2.
9 billion resort-casin project on the Las Vegas Strip is 70percent “I think it’s extremely expensive and impairz our ability to reorganize,” Baena said during the first meeting of creditors on Wednesday in Miami. “Great harm and damage will be visitefd on the debtor is this litigation goesahead now.” Baensa said he will likely seek a stay of the Miami-based Berger Singerman is handling the litigation.
The company has said that the decisioh to file Chapter 11 was the direcrt result of litigation with lenders on the Las Vegasw hotel construction project that had to do with contractual disputes related tonearly $800 million in construction funding for the