Fontainebleau Las Vegas resort files for Chapter 11 bankruptcy

The $3 billion Fontainebleau Las Vegas resort project filed for Chapter 11 bankruptcy protection late on Tuesday, after a group of lenders pulled out of an $800 million loan that was needed to finish the project, which was going to be one of the most lavish on the Vegas strip.

The owners of Fointainbleau are searching for other investors to finish the project but are planning to sue the lenders. Construction has right now stopped on the project.

Many Vegas projects have been delayed due to financing recently, and this affects workers as well, as 3,000 workers were employed on the Fontainebleau site. It was expected to employ 6,000 people once it opened.

It has also announced that it is filing a $3 billion lawsuit against its lenders in the U.S Bankruptcy Court in the Southern District of Florida, and has previously filed a suit in Nevada state court.

The lenders said that they pulled Fontainebleau's financing because of the project was in default of the loan agreement.

Politicians in Nevada have urged other banks to step in and fund the project.