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Monday, Jan. 11, 2010 | 2:05 a.m.
Sun Archives
- Fontainebleau judge details guidelines for credit bid (12-8-2009)
- Fontainebleau: Half-built bargain bid up by billionaire (12-7-2009)
- Fontainebleau lenders sue construction companies over liens (11-27-2009)
- Fontainebleau retail component seeks bankruptcy protection (11-27-2009)
- Contractors make another bid for Fontainebleau (11-26-2009)
- Penn National’s bid sets up auction for Fontainebleau (11-5-2009)
- Fontainebleau subcontractors organize to finish project (11-17-2009)
- Fontainebleau developer plans appeal of rulings (11-2-2009)
- Subcontractors fall short in effort to move Fontainebleau case (10-26-2009)
- Executive named examiner in Fontainebleau bankruptcy case (10-16-2009)
- Fontainebleau president among execs leaving project (10-15-2009)
- 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)
Bids are due Friday from companies and individuals wanting to buy the bankrupt Fontainebleau casino-resort development project on the Las Vegas Strip.
Parties desiring to take over the 70-percent-complete, 3,815-room resort will have to offer more than the $156.2 million currently offered by "stalking horse bidder" and investment veteran Carl Icahn.
Jeff Truitt, the examiner appointed to supervise Fontainebleau, plans to announce any qualified bids on Jan. 19.
If a qualified bid exceeds Icahn's offer, an auction is set for Jan. 21.
Contractors claiming to be owed $467 million for work on the resort had hoped to submit a "credit bid," with their claims serving as currency, as opposed to a cash bid.
But because of uncertainties as to whether lenders or contractors hold first-priority liens on the project, Bankruptcy Judge A. Jay Cristol rejected their motion to credit bid.
Last month, he gave them the opportunity to appeal his ruling if they posted a bond equal to Icahn's bid, but the contractors chose not to post the bond. The bond would have covered potential losses to the bankruptcy estate because of the appeal.
The contractors and lenders are now engaged in litigation that may drag on for years to determine who will receive the cash proceeds from this month's bidding and auction process.
Interest in acquiring Fontainebleau has been limited because of difficult economic conditions in the gaming industry and the hundreds of millions of dollars, or billions of dollars, needed to complete the resort.
Nevada gaming revenue for the fiscal year ended June 30 fell 13.7 percent to $10.8 billion. The July-October 2009 win was down 10.6 percent to $3.4 billion.
The hotel room inventory in Las Vegas was up 2.8 percent year-over-year in October, to 141,489 rooms -- but occupancy was down 1.2 percentage points from a year ago to 82.6 percent.
The recession and the addition of new supply within the past two years at the Palazzo, Trump Tower, Palms Place, South Point, Aliante Station, Eastside Cannery, Encore, M Resort, the Hard Rock, Golden Nugget, Planet Hollywood and CityCenter have served to dampen prospects that Fontainebleau, which had been scheduled to open in October 2009, would have achieved room rates, occupancy levels and gaming and other revenue sufficient to meet financial projections.
Icahn, who also controls Las Vegas-based gaming company Tropicana Entertainment LLC, hasn't disclosed plans for Fontainebleau should he acquire it.
It's unknown if other bids will come in for Fontainebleau, though Truitt said in a report Friday that "certain parties" have signed non-disclosure agreements and have been provided access to confidential Fontainebleau financial data.
Earlier interest in acquiring the project was shown by Penn National Gaming, which was outbid by Icahn to be the stalking horse bidder; and Apollo Global Management, one of the companies that controls Harrah's Entertainment Inc.
Once billed as a $2.9 billion resort, banks and bondholders are owed $1.675 billion in the bankruptcy case, in addition to the $467 million claimed by contractors.
But an appraisal submitted last summer by Bank of America found the project would be worth just $1.764 billion if it opened in May of this year -- far less than its debt and projected completion costs.
Construction on the resort was halted and it filed for bankruptcy reorganization last summer after Bank of America and other lenders cut off funding, citing cost overruns and other problems.
Fontainebleau, developed by Miami businessman Jeff Soffer and his Turnberry Associates company, was unsuccessful in a lawsuit seeking to force B of A and other lenders to provide $656 million needed to continue construction.
Cost overruns caused the banks to stop funding the project. Gee, I wonder if it was a Union job?
In this case, the Union subcontractors deserve to lose every dime they put into the project. Your liens are worthless, your employees are definitely worthless, and now you're learning that change order requests are only valid when they are paid. Losers, all. Right, Steve Ross, you Union shill?
This is the place Boyd should buy and call it The New Statrdust!!
Looks like something is about to happen with the Big Blue Thing. Check out the Clark County permit report for last week.
http://dsnet.co.clark.nv.us/dsnetapps/pm...
Why don't they turn it into a hospital? It already looks like one.
bdover, are you the non-union shill representative? Every time you post a comment you are admitting that you have got the hoof and mouth desease that is incurible.
The same old non-union mentality that union tradesmen don't do squat for their union wage is just a falicy because you non-union people are jealous of our wages and our benefits.
I have told you that the unions have been organizing non-union workers and non-union shops, we need both non-union factors, The contractors,so they can provide the union jobs and the tradesmen, so they can become the union worker.
Good money for good work that provides future benefits for union members.
bdover you can stand up now
Hey Bdover (is that short for bend over?) anyway, imagine if this project would have been non-union, it would have gone belly up a long time ago. You think that because of your cheap labor, no benefits and limited skills that you are going to get away with cheap under bidding, which is usually the case. Because you lack what is needed to complete a project of this magnitude, it is impossible for you to even step foot in a job like this. How many times has the non union contractor and his lackies, attempt to tackle a job like this and then a few months later they bail out (look at what happened at Panarama 3). Your skill level is sub-par and extremly inferior, regardless of what you may think, its the truth, you know it, I know it, we all know it, you are only trying to convince yourself when you say otherwise, which means that quality, workmanship, safety and ethics are out the window, with you on the job, the job is done two, three, four or five times (on a good day), until you get it right or until my apprentice does it for you. Look at how pathetic you sound, you try to claim that "large salaries" are responsible for cost over runs, BE FOR REAL! We are told what to do, we are told what is needed, we follow strict directions by THE OWNER (unlike you, who doesnt even know which side of a shop drawing to interpret) we make all of the changes the THE OWNER wants done. We are not responsible for decisions THE OWNER makes. Whether its this project or any other, dont follow directions and you are out the door! THE OWNER runs the show! How can you brag that you are better because you make less money!? We, as Union journeyman are needed not only for these jobs but for the local economy. It is us that buy the new cars, it is us that buy the houses, it is us that go on vacations, it is us that go to the restaurants, it is us that can afford to spread the wealth and keep everything moving, NOT YOU! Really, how much can you bring to the table with your $15.00 per hour, not much huh? You could barely save for a cup of coffee! Ive never been on a job where all you do is stand around and get paid. Fremmeasmind hit the nail on the head when he pointed out that you are very jealous, its a shame. I have been a Union Journeyman (3rd generation) for 25 years and I meet your type everyday, you talk crap about the Unions then the very moment your given the opportunity to "organize in", you jump at the chance. And even after "your type" "organize in" you guys cant even cut it on the field AND THATS A FACT! Its a damm shame when you guys come on the job and have to be taught by a 1st or 2nd year apprentice! Earn your book the right way dammit! Thats why this recession is a blessing in disguise, no more books for sale! and when it comes down to it, WE ARE EXTREMELY UNDERPAID!.........................................SCAB!
Nice to see some newer pictures of it. It doesnt look too alfully bad from those angles.
bdover:
Your assumption's about what went wrong with this jobsite are as per your usual, totally wrong and a misrepresentation of what happened based on your own insignificant understanding of how the construction industry works. Next time, save yourself the self inflicted embarassment from other's by keeping the peanut gallery commentary to yourself, folks just aren't interested in seeing your argument's get obliterated everytime you think you know something and decide to type. If your point had any merit then the other new project's listed in this article that Fontainbleau will be competing with should all be in the same boat. But, they're not, and guess what--They were all built union too! Gee, Imagine that!! It was all about the financing and upper management incompetence on this one. They couldn't make any decision's out there starting with the building's design--they fired the first Architectural firm and the job became a design and build right from the get go. The contractor's out there did the job's they were given and they will receive their money, trust me.
I'm sorry but I got to agree with bdover when it comes to the quality of work that Union Worker's do. I've been on Union and Non-Union jobs around the US and The quality of work of most Union Companies can't be compared to Non-Union Companies.
Not every union person but most of them are worthless. They have an attitude that sucks. They don't care about the work they do because all they got to do is go to the hall and sign up for the next job if they get fired. Don't get me wrong there are some very competent individuals that I've dealt with in unions, but those people are a dime a dozen.
It's also embarrasing when your walking a building with Owner or Bank Rep's and there's graffiti all over the walls. Next time your in a meeting at your Union Hall, you should bring up the graffiti and quality of work issue. Your Unions are getting a bad rep with those incompetent individuals that are part of your Union.
Bdover: In the first place you couldn't even man a project that size these days with non-union workers, most of the non-union workers and shops have been organized already. Do you think a project like the City Center would be open now? I hardly think so! Think about what your saying! I know your haveing a good time taunting the Union workers that are responding to your lame comments about Unions. It's ok I understand you might have been Union at one time in your life and couldn't cut it and were let go. I understand your contempt for Unions, I'de have a hard time accepting them too If I was a LOOSER like you too. Rejections is a hard thing to accept for anyone.
Yes but look what the unions did to the auto industry. They have to charge what they do for new cars because they have to pay uneducated losers to stand in place and bolt car parts on and then demand WAY too much pay for it. Down with unions!!!!