Judge allows Fontainebleau lawsuit to move out of bankruptcy court
A federal judge in Miami has granted a motion by banks involved in the Fontainebleau Las Vegas bankruptcy to move a lawsuit out of bankruptcy court.
Fontainebleau Resorts. the project’s developer, filed a multi-billion-dollar lawsuit in April against the lenders, led by Bank of America and JPMorgan Chase, when the banks backed out of an agreement to loan the project $770 million.
The case began in Clark County District Court, was moved to Nevada federal court, and then was filed as part of the project’s Chapter 11 bankruptcy case in the U.S. Bankruptcy Court in the Southern District of Florida.
The case will now be heard in the U.S. District Court in the Southern District of Florida.
The banks asked for the case to be moved out of bankruptcy court, in part, because a ruling in bankruptcy court would have to be reviewed by the federal court anyway.
The federal court also requested an update on bankruptcy mediation and settlement negotiations, which involves the banks and the developer, by Aug. 13.
Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.
