Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Fontainebleau Las Vegas Likely to Reach Settlement Deal
Author: Joel R. Glucksman
Date: November 28, 2013
Key Contacts
Back
A four-and-a-half year bankruptcy case involving the failed Fontainebleau Las Vegas casino tower may be nearing an end. A U.S. bankruptcy judge said he was inclined to approve a settlement agreement in the messy Chapter 7 bankruptcy proceedings over the $2.9 billion tower, which is considered one of the largest busts in real estate history.
U.S. Bankruptcy Judge A. Jay Cristol said he was considering approving a $178 million settlement that would pay contractors roughly 25 cents on the dollar, according to the Miami Herald. Additionally, construction lenders would recoup nearly $89 million.
“I certainly have sympathy for all of the people who have money coming to them and seem to have been waiting forever,” said Judge Cristol in a court hearing, according to the news source.
The settlement funds would come from several organizations and investors involved in the failed project. Approximately $93 million would come from sale proceeds paid by Carl Icahn when he purchased the unfinished tower in 2010. The Herald notes that the money has been in a frozen escrow account pending the bankruptcy outcome. Title companies that backed the project would add another $33 million to the settlement fund, and the remaining $50 million would come from a completion guarantee funded by Jeff and Jacquelyn Soffer.
Construction of the skyscraper was halted in mid-2009 after the toll of the economic crisis hit the commercial real estate market hard, and forced the owners of the unfinished Fontainebleau to seek protection under the bankruptcy law. The building is still in the skeletal stage, and Chris Giunchigliani, Clark County commissioner, said she has received a barrage of complaints over the stalled project, which is considered an eyesore by the city, according to 8 News Now.
“I’m glad if they do the settlement,” Giunchigliani told the news source. “If they’re working that off, that actually then helps clean or prepare the road for something to maybe happen there.”
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Legal Issues Before Bringing on Investors
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
Author: Dan Brecher
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.