Developers of the Fontainebleau Las Vegas casino-resort filed a $3 billion lawsuit against Bank of America (BAC) and other lenders late Thursday, alleging they declined to provide about $800 million in prearranged financing for the 3,800-room project on the Las Vegas Strip.
From Bloomberg: Fontainebleau, whose corporate parent owns a hotel on 22 acres of Miami Beach, Florida, also named JPMorgan Chase & Co., a unit of Deutsche Bank AG and seven other defendants in its complaint filed yesterday in Nevada state court, Fontainebleau said in an e-mailed statement. The banks pulled out of a written agreement to finance completion of Fontainebleau’s $2.4 billion casino-hotel being built in Las Vegas, according to the statement.
The lenders’ termination of an $800 billion loan “is nothing more than the banks’ baseless attempt to walk away from the project and abandon their obligations,” Fontainebleau said.
Let’s keep in mind that all the lenders allegedly refusing financing to Fontainebleau, have collectively received tens of billions of dollars in federal bailout money that was meant to increase the flow of credit.