A bankruptcy judge last week signed off on the $27.5 million settlement agreement with Fontainebleau Las Vegas resort’s officers, directors and managers of the debtors involved in the $2.9 billion development, the Miami Herald reported today. Bankruptcy trustee Soneet Kapila reached the agreement after more than two years of negotiations and three years of litigation. Insurers of the directors and officers will pay $25 million and developer Jeffrey Soffer, an owner of Turnberry Associates, will be responsible for paying $2.5 million. Separate litigation filed by the term lenders in Nevada was also settled, resulting in a payout of $98 million. Of that, $93 million will be paid by the directors and officers insurers and $5 million will come from Soffer. A $178 million settlement agreement with creditors for the development was approved in December of 2013. The Las Vegas project was never completed; it filed for bankruptcy protection in 2009. During the bankruptcy process, investor Carl Icahn bought the building.
