Fontainebleau misses payment due to former executive's estate

The estate of former Fontainebleau Resorts executive Ana Fernandez received an approximately $400,000 judgment in local probate court July 9 after the Miami-based developer missed a June payment to the estate.

Fontainebleau Resorts' payments to Fernandez's estate had slowed after the company opened a $1 billion renovation and expansion of its Fontainebleau Miami Beach hotel and then saw its Las Vegas subsidiary file for bankruptcy.

The $400,000 is final payment from a $4.5 million payout on her contract.

Fernandez left the company in 2006 and died from medical complications unrelated to her job the following year. She had been a senior executive vice president prior to her departure.

The details of her departure are not disclosed.

Fernandez joined Fontainebleau Resorts from Mandalay Resort Group in 2005. She was part of a core group of former Mandalay executives, led by Chief Financial Officer Glenn Schaeffer, who partnered with Miami developer Jeffrey Soffer to establish Fontainebleau Resorts.

Schaeffer, who was Fontainebleau's chief executive officer and president, left the company in May weeks before the Fontainebleau Las Vegas filed for bankruptcy.

The $4.5 million was arbitrated between Fernandez's estate and Fontainebleau Resorts, according to a March 16 filing in probate court, a division of Clark County District Court.

According to the filing, Fontainebleau Resorts agreed to pay $1 million on May 28, 2008, $2 million on Sept. 29 with the final payment of $1.5 million due Dec. 31.

While the first two payments were made, counsel for Fontainebleau Resorts sent a letter Dec. 30 stating that it could only pay $500,000, and the remaining $1 million, plus 7 percent interest, would be paid March 16.

Fontainebleau Resorts declined to comment.