Bank of America Corp., JPMorgan Chase & Co. and other lenders justifiably refused additional loans to an "ambitious" casino development by Fontainebleau Las Vegas LLC, as the company had breached a credit agreement governing the revolving loans, a U.S. appeals court said.
The casino company sued the lenders for $3 billion in 2009, saying they refused to provide $800 million in funding for the development. Fontainebleau hadn’t abided by conditions it undertook to fulfill before the banks would increase their revolving loans from $150 million, the appeal judges ruled Wednesday.
