Morgan Stanley bought $320 million of Fontainebleau Las Vegas Holdings LLC debt as a Nevada court decides who will be paid first by the estate of the bankrupt casino company, Bloomberg News reported yesterday. Fontainebleau Las Vegas LLC and affiliates Fontainebleau Las Vegas Holdings LLC and Fontainebleau Las Vegas Capital Corp. filed for bankruptcy in Miami in 2009, listing debt of more than $1 billion each. New York-based Morgan Stanley made 67 trades in the company's claims, SecondMarket Holdings Inc. said yesterday in a report. Billionaire investor Carl Icahn bought the unfinished Fontainebleau Las Vegas casino resort for about $150 million in 2010. Lenders and contractors are fighting over that money, a dispute that is being decided by Nevada Supreme Court judges who heard arguments in June on who has priority claims.
