Fontainebleau creditors seek Chapter 7 liquidation
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Sept 29 (Reuters) - A group of creditors of Fontainebleau Las Vegas LLC have asked a Florida bankruptcy court to convert the company's Chapter 11 bankruptcy into a Chapter 7 liquidation.
In a motion filed on Friday, the term lender steering group also sought the appointment of a trustee to oversee a liquidation. The lender group said more than three months had passed since the bankruptcy filing, and the company had not since made meaningful progress.
Fontainebleau filed for bankruptcy protection in June after its lenders terminated commitments to provide nearly $800 million of construction funds, leaving a 3,800-room casino and resort project unfinished.
The term lender steering group said selling the project to a third party and liquidating the remaining assets was the only viable course to realize any meaningful value for the creditors, as completion of the project by Fontainebleau was not possible, according to court documents.
The case is In re Fontainebleau Las Vegas Holdings LLC, U.S. Bankruptcy Court, Southern District of Florida, No. 09-21481.
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