Contractors rather than banks are entitled to receive a $100 million payout from the Fontainebleau Las Vegas bankruptcy case, the Nevada Supreme Court said in an opinion yesterday, VegasInc.com reported yesterday. Attorneys said that the opinion is significant for Nevada contracting companies because it gives them more protections in situations like those involving the $2.9 billion Fontainebleau, a casino resort that failed while still under construction in 2009. The failure left lenders, bondholders and contractors owed some $2.1 billion and caused hardships for some contractors that had their own bills to pay. With just $100 million available to pay Fontainebleau debts after the project was auctioned to investor Carl Icahn during its bankruptcy, court fights have been raging around the country over that money, as well as claims that Fontainebleau’s nonbankrupt developer misled lenders and is liable for their losses.
