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Fontainebleau Las Vegas Court Rejects
Trustee’s Settlement, Upholds Objections

Oct. 28, 2014, 9:16 PM

The trustee liquidating the Fontainebleau Las Vegas LLC was barred by the bankruptcy judge from implementing an $83.3 million settlement of lawsuits against former directors, officers and managers (In re Fontainebleau Las Vegas Holdings LLC, Bankr. S.D. Fla., 09-21481, settlement denied 10/24/14).

In July, U.S. Bankruptcy Judge A. Jay Cristol in Miami declined to approve a provision in the settlement that would have barred a pending lawsuit against Fontainebleau directors and officers filed by term-loan lenders. The term-loan lenders renewed their objection to entry of a proposed bar order, which was a condition to the settlement’s consummation. ...