Another Fontainebleau creditor asks to transfer case to Nevada court

By Jennifer Lanning Drey

Portland, Ore., June 22 - Holders of $111 million in mechanics and materialmens' liens against Fontainebleau Las Vegas Holdings LLC asked that the company's Chapter 11 bankruptcy case be transferred to the U.S. Bankruptcy Court for the District of Nevada, according to a Friday filing.

Fontainebleau filed for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Florida.

However, the lienholders noted the company's assets, operations, books, records, employees and bulk of creditors are in Nevada.

"Even if the venue is technically proper, debtors' selection of a venue across the country from its assets and its operations suggests a calculated effort to exclude its creditors, its employees and the local community from its reorganization proceedings by substantially increasing the cost of participation," the lienholders said.

As previously reported, Fontainebleau secured creditor Young Electric Sign Co. has also asked the Florida bankruptcy court to transfer the company's case to Nevada on similar grounds.

Fontainebleau is a Las Vegas-based casino-resort developer. It filed for bankruptcy on June 9. The company's Chapter 11 case number is 09-21481.

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