Fontainebleau investor has no plans to participate in restructuring
Crown Ltd., the Australian-based gaming company that is a 19.6 percent investor in Fontainebleau Resorts, said it doesn't intend to "participate in any restructuring under any bankruptcy arrangements" for Fontainebleau Las Vegas.
The announcement came this morning with Crown saying it has written down the value of its equity investment to zero.
The company said the write down was in response to the Chapter 11 bankruptcy filing by Fontainebleau Las Vegas and two of its affiliates.
Crown, which is controlled by Australia's richest man James Packer, said the company holds $22 million in debt with Fontainebleau, but expects to write that amount down during a June 30 review of Crown's finances.
Crown paid $250 million in April 2007 for its stake in Fontainebleau Resorts, which also owns a resort in Miami.
Crown reiterated what it told the Review-Journal in late April that the company "has no current intention to contribute any further equity or debt to Fontainebleau."
