Seward & Kissel obtained a billion dollar judgment in New York Supreme Court on behalf of Administrative Agent for Lenders to Fontainebleau Las Vegas Casino.

November 5, 2010

Seward & Kissel represented the administrative agent for the lenders to the failed Fontainebleau Hotel Las Vegas casino project in an action to enforce guarantees made by the Las Vegas entity’s corporate parents. The court granted summary judgment in favor of the administrative agent for more than $1 billion, rejecting numerous defenses interposed by the guarantors. Thereafter, when the defendants sought to restructure their corporate organization in a manner that would have diluted the value of The Fontainebleau Miami Beach Hotel, the guarantors’ primary asset, the administrative agent moved for injunctive relief. The Court granted the motion, prohibiting defendants and their affiliates from closing the restructuring or making or allowing any transfer of property.

Civil Action – Wilmington Trust FSB v. Fontainebleau Resorts, LLC, Supreme Court, New York State, Index No.: 650436/2009