Facebook
Fark
Digg
Reddit
StumbleFontainebleau president among execs leaving project
Thursday, Oct. 15, 2009 | 2:49 p.m.
Sun Archives
- Fontainebleau a symbol of bad timing, not the only victim (10-12-2009)
- Fontainebleau judge wants quick sale of bankrupt project (10-2-2009)
- In reversal, Fontainebleau lenders suggest liquidation (9-25-2009)
- Fontainebleau: Bank no longer ‘seeking to destroy’ project (9-17-2009)
- Potential buyer in negotiations for stalled Fontainebleau project (9-15-2009)
- Fontainebleau contractors seek lien claims in state court (9-14-2009)
- Fontainebleau suit against lenders moved from bankruptcy court (8-5-2009)
- Another lawsuit alleges unpaid work at Fontainebleau (7-14-2009)
- Fontainebleau builder says it’s protected from paying severance (7-14-2009)
- Fontainebleau fires back, outlines bank dispute (7-8-2009)
- Fontainebleau developers: Design change could help costs (7-6-2009)
- Court filings shed light on Fontainebleau financing (7-2-2009)
- Practice of building before designs are done hits wall at Fontainebleau (6-28-2009)
- Flood of new hotel rooms dims Vegas outlook for '10 (6-23-2009)
- More subcontractors accuse Fontainebleau of failing to pay for work (6-23-2009)
- Fontainebleau subcontractors want bankruptcy case moved (6-22-09)
- State gaming regulators shied away from policing borrowing (6-21-2009)
- Fontainebleau subcontractors say contractor conflicted (6-19-09)
As developers of the bankrupt Fontainebleau Las Vegas resort attempt to sell the unfinished project, the company continues to trim its staff and most recently revealed the departure of its top local executive.
Audrey Oswell, president and chief operating officer of Fontainebleau Las Vegas and a longtime gaming executive, is among seven executives who have seen their employment contracts terminated since May 15, Fontainebleau said in court papers Thursday.
Oswell left Oct. 2, according to Fontainebleau's motion to reject her employment contract along with the contracts of Joel Bloom, Andrew Finn, Arik Knowles, Peter Magdos, W. Bryan O'Shields and Alexander Terry.
"Due to (Fontainebleau's) financial situation, each of the employees ... was terminated ... and is no longer employed by (Fontainebleau). Each such employee had entered into an employment contract ... . In the business judgment of the debtors, the employment contracts do not provide a benefit to the debtors or their estates, and the employment contracts may therefore be rejected," Fontainebleau said in its motion.
Oswell couldn't immediately be reached for comment Thursday.
Before joining Fontainebleau last year, Oswell was chief operating officer of the Cosmopolitan Resort & Casino, which is still under construction on the Las Vegas Strip.
Previously, she was chief executive officer of Resorts Atlantic City and president and chief operating officer of Caesars Atlantic City.
Fontainebleau, which has been working to sell the 70-percent-finished resort to Penn National Gaming or another party, also filed a motion Thursday for approval to cancel contracts for numerous meetings and conventions scheduled at the resort for between May 2010 and October 2011. With the project in limbo, Fontainebleau said it's unlikely it can accommodate those meetings.
Also in the case this week:
--Two groups of subcontractors sued Fontainebleau, Bank of America and other project lenders, seeking a declaration that their liens are superior to those of the lenders.
The plaintiffs in the first suit are Desert Fire Protection, Bombard Mechanical, Bombard Electric, Warner Enterprises/Sun Valley Electric Supply, Absocold/Econ Appliance, Austin General Contracting, Powell Cabinet, Fixture Co., Safe Electronics, Samfet and Union Erectors.
The second suit was filed by subcontractors Zetian Systems and its subsidiary Z-Glass, Graybar Electric, Tracy & Ryder Landscape, Water FX, Quality Cabinet and Fixture, Derr & Gruenewald Construction, Sierra Glass & Mirror, Morris Shea Bridge Co., Crescent Electric Supply, Integrated Mechanical Group, Hilti Inc. and Cashman Equipment.
The suits are similar to one filed earlier by the project's general contractor, Turnberry West Construction, which like Fontainebleau is controlled by Miami developer Jeff Soffer. The subcontractors noted the Turnberry West suit over the liens has been put on hold -- making it necessary for them to file their lawsuits.
--Judge A. Jay Cristol signed an order spelling out the duties of an examiner who will be named to supervise the sale of the property.
Cristol said he decided to appoint an examiner after a group of lenders complained that the sales process could be tainted by Soffer's conflicts of interest as being both a debtor and a creditor; and because of personal guarantees he's made for various Fontainebleau loans.
"This court finds and concludes that appointment of an examiner to expedite the sale process and avoid any conflict, or appearance of conflict of interest, is in the best interests of the estate and its creditors," Cristol said in his order.
"The examiner shall be responsible for negotiating the terms of any agreements with potential purchasers of the assets, including any `stalking horse bidder.' The examiner shall have unrestricted access to participate in any negotiations conducted on behalf of the estate with potential purchasers of the assets," Cristol's order said.
Once billed as a $2.9 billion project, construction was halted on the resort on Las Vegas Boulevard this spring after B of A and other lenders halted funding due to cost overruns and other problems including a lack of condominium sales that would have covered substantial construction costs.
Fontainebleau has borrowed $1.675 billion against the project, and estimates to complete it have ranged from $1.5 billion to $2 billion.
Interest in buying Fontainebleau has been hindered by the recession facing the gaming industry and the oversupply of hotel rooms, gaming tables and slot machines in Las Vegas.
Besides what's owed to the lenders, contractors have asserted claims against the resort totaling hundreds of millions of dollars -- including a $675 million claim filed by Soffer's Turnberry West company.
Discussion: comments so far…
Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy. Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their Las Vegas Sun account. For more on this change, read our story about how it works and why we did it.
Only trusted comments are displayed on this page. Untrusted comments have expired from this story.
No trusted comments have been posted.
Post a comment
Most Popular
- Viewed
- Discussed
- E-mailed
- Photos: Olivia Culpo, 20, of Rhode Island is crowned 2012 Miss USA at Planet Hollywood
- US Navy hopes stealth ship answers a rising China
- Photos: Derek Hough celebrates 27th birthday at Tabu Ultra Lounge
- Learning about Electric Daisy Carnival fans will help Las Vegas court them
- On the horizon: A quick look at projects poised to shape downtown
Everything Under the Sun
Blogs
The Kats Report
Joe Pesci remembers his own honeymoon in Vegas -- meeting the Rat Pack
Las Vegas Philharmonic says search for new music director to begin 'immediately' (1 Comment)
With Shenandoah project stalled, Wayne Newton hits back legally (7 Comments)
Where does a Playmate play when she turns 21? Vegas! (3 Comments)
Ice Ice Billy
The road to six-toed cats and Mayor Bubba
The Kats Report
David Itkin tells L.V. Philharmonic officials he's on his way out (14 Comments)
Diamond Dave sells it well as Van Halen pours out the power at MGM Grand (2 Comments)
- Locally owned and independent since 1950; Winner of the Pulitzer Prize for Public Service, best news website in the nation & DuPont Award for broadcast journalism
Rat's and sinking ship come to mind.
Don't cry for Audrey!!!! He already has a new job.
Saw him working the fries at IN-OUT-BURGER
Great Benefits: 10% off fries after 2 years.
In Las Vegas Titanic is spelled f-o-n-t-a-i-n-e-b-l-e-a-u
How about Fountainred, as in "fountain of red ink"!!
Boomer, Audrey is female
No potential employer of the terminated Fontainebleau employees should think badly of them, or their service to Fontainebleau as their employer. Even though the language in the court documents, saying they were "terminated" is cold and negative, that's just lawyer speak for ending someone's employment.
Obviously, they weren't fired for being bad employees. The kind words are that they were laid off because the company went bankrupt, which is the truth.
Not to change the subject, but What is it with In N Out Burger?. Why do so many people, including many Hollywood celebs, seem to love it so?
I tried it out there in Vegas a few years ago and wasn't impressed at all. No better or worse than any of the other fast food burgers. Just another burger. For that matter, I'm not impressed by Five Guys either.....
Am I the only one to be surprised to find out that, long-bankrupt-F'Blow execs were fired just recently?
As usual, CynicalO is spot on. Usually, the main players on a failing project really have a small impact on the overall disaster. The project is bid, let out, and then all hell breaks loose. What can one or two people do to correct a poorly bid job that is affected by the Union loafers and their cronies who drive the costs to the moon? Have you ever seen the plumbers sitting on their fat butts, taking their 2:15pm 15 minute break to 3:00pm easy? Jesus, I've been there. But let's not panic. They'll all be on UI soon, faced with a big choice. Move, or shut up. It's inevitable-This town is dead. Hey, cocky guys, move to Laredo. Hope you speaka' da Espanol.... God, I loved Bechtel. We could control you local union losers...
You have *got* to read this article from the Laguna Journal, (from beachside Orange County, California) titled:
"SIN CITY SHORES".
ALL OF THE PHONEY-BALONEY LOCAL POWERBROKER TYPES WHO YOU THINK MIGHT LIVE HERE...
...DON'T EVEN LIVE HERE.
They're using 'Vegas as their cheap little business whore ( to get around taxes and residency requirements).
NO WONDER THE SCHOOLS, HEALTH CARE, CRIME, REAL ESTATE, AND A LOT ELSE HERE IS IN SHAMBLES.
Watch your jaw drop when you click on this link and read this stuff:
http://www.lagunajournal.com/sin_city_sh...
Mine did.
davidcurtis:
How would I know, she put on a beard so I thought she was a man
wizardofoz : I read that article, and find it not so jaw dropping.. I mean these people are the super rich, they have no obligation to live in any one place at any time. They have to pay their taxes on their properties in the OC just like everyone else. Don't hate them because of their wealth, thats too easy. I'm not saying that they shouldn't be more like Moe Dalitz who gave back to this valley in so many ways, but they earned their right to own as many houses as they want all over the world for that matter. Don't we wish we had that problem...
I know Smokinink, I eat red meat once in a blue moon and during one of those I went to In and Out. Worse fies ever and the hamburger was medeocre at best.
Well instead of In-N-Out, there is the brazen burger at Le Burger Brasserie, inside the Paris Las Vegas casino. Their $777 Kobe beef and Maine lobster burger is topped with caramelized onion, brie cheese and prosciutto, all of it accompanied by Dom Perignon champagne. Bon Appetit!
Wizardofoz...I see that gold digging biatch, Sandy Murphy, snagged another fish.
Hmmm..Interestingly the President of this property also ran Cosmo project which, ofcourse, ran into problems too. So two high profile projects headed by the same person run into some kind of issue! Hmm this implies something..something not good!
This is clearly a case of bonana. Understand?
Mike Slaughter of Kuehne-Nagel was the one who sank this project. Go to his house with burning firey torches. I say we go after his head.
ABANDON SHIP!!!!
They run down projects but collecct the big paychecks anyways. Then, they get a job as top executive at another company, to sell their "skills" greatly. Usually the top executives come from "outside" but people who have been loyal to a company for years and know what's going on don't get a chance to grow up. This happens everywhere in the world and is something that needs to be changed, too. Then, these top-managers are collecting bonusses that are guaranteed in their contracts from the beginning, and even if they fail to succeed, these fat cats are collecting the big dough and then hit the road to the next company. I mean, isn't it ridiculous?
Blow-it-up!! Blow-it-up!!
To Environprotector, You are right we should not hate to rich, we should learn from them. As a contractor I have worked for both, the rich man and the average Joe. And the secerts I have learn I will share with you so you can be rich too. When I work for the average Joe he pays me instantly, Big Mistake you will never get rich doing that. The Rich man always reguested an invoice to be sent to a State far away form the job and tells you that all invoices are paid from there, and they are paid 30 days or 90 day after they are received. Then they claim they never got the invoice, and blow you off for another 6 to 9 months. If you do dare to continue to waste their valuable time they turn it over to their lawyer, and wait you out. You can quickly build your wealth when you don't waste it on all these bills. It is true that you can only burn a contractor once or twice, but there are plenty more out you can use this same method on. See Ya at the Top.
@smokininkman
with all due respect, those are fighting words!
neither 5 guys, nor in and out compare to the the rest of the fast food goons. a double double with grilled onions and skinny fries?! - are you serious? and its east coast counterpart, 5 guys, with its double stack meat and cheese and fresh jalapenos? what?! sir, i hope you have health insurance cause you need to see a doctor about you either you broken tastebuds or skewed percetion.
oh and this whole fountainbleu thing is a bitch.