Fontainebleau seeking bankruptcy.

[nutforslots]

Fontainebleau is seeking $1 million for bonus's to keep top executives until the company is sold.

Howard Karawan, chief restructuring officer, testified during a hearing in Miami’s U.S. Bankruptcy Court that the company needs the extra money so the handful of remaining Fontainebleau executives and managers will focus not on finding new jobs but on stabilizing the casino-resort building and assisting with the auction process in which Fontainebleau is due to be sold next month.

The company had apparently filed for bankruptcy protection back in June. The issue now is that they feel that they can not continue the sale process without these people.

Attorneys for the U.S. Trustee’s Office objected to the bonus plan.

Bankruptcy law “requires that the debtors show that the retention of each such insider is essential to the survival of the business,’’ they said in court papers.

“The debtors merely state that the loss of the employees ‘has the potential to derail the debtors’ ability to consummate the sale’ and this is simply not enough to meet the standard. The debtors must show that without these insiders the sale process will not take place,” attorneys for the trustee’s office wrote.

The trustee’s office also pointed out that several Fontainebleau Las Vegas executives also are on the payroll of Fontainebleau’s non-bankrupt parent company.

It will be interesting to see how this plays out.

[winbig]

I just had to LOL @ the first statement:

Fontainebleau is seeking $1 million for bonus's to keep top executives until the company is sold.

let me get this straight....the company is bleeding out millions if not billions of dollars, and they want $1m more that they could never pay back just to keep the top brass?

when they already have job security?

The trustee’s office also pointed out that several Fontainebleau Las Vegas executives also are on the payroll of Fontainebleau’s non-bankrupt parent company.